PROSPECTUS
January 31, 1995 as Revised September 30, 1995
CALVERT SOCIAL INVESTMENT FUND
Money Market Portfolio
Managed Growth Portfolio
Bond Portfolio
Equity Portfolio
Introduction to the Fund
Calvert Social Investment Fund seeks to provide growth of capital or current
income through investment in enterprises that make a significant contribution to
society through their products and services and through the way they do
business. Investments are selected on the basis of their ability to contribute
to the dual objectives of the Fund. Potential investments are first screened for
financial soundness and then evaluated according to the Fund's social criteria.
An investment in the Fund is neither insured nor guaranteed by the U.S.
Government. There can be no assurance that the Money Market Portfolio will be
successful in maintaining a constant net asset value of $1.00 per share. The
Fund has four different Portfolios, each with a different investment objective
The Money Market Portfolio invests in money market instruments, including
repurchase agreements with banks and brokers secured by such instruments,
selected in accordance with the Fund's investment and social criteria. The Money
Market Portfolio seeks to maintain a constant net asset value of $1.00 per
share.
The Managed Growth Portfolio maintains an actively managed portfolio of
stocks, bonds and money market instruments selected with a concern for the
investment and social impact of each investment.
The Bond Portfolio invests primarily in corporate bonds and other straight debt
securities, selected in accordance with the Fund's investment and social
criteria.
The Equity Portfolio maintains an actively managed portfolio of stocks selected
with a concern for the investment and social impact of each investment.
Purchase Information The
Managed Growth, Bond, and Equity Portfolios offer two classes of shares, each
with different expense levels and sales charges. You may choose to purchase (i)
Class A shares, with a sales charge imposed at the time you purchase the shares
("front-end sales charge"); or (ii) Class C shares which impose neither a
front-end sales charge nor a contingent deferred sales charge. Class C shares
are not available through all dealers. Class C shares have a higher level of
expenses than Class A shares, including higher Rule 12b-1 fees. These
alternatives permit you to choose the method of purchasing shares that is most
beneficial to you, depending on the amount of the purchase, the length of time
you expect to hold the shares, and other circumstances. See "Alternative Sales
Options" for further details.
To Open an Account Call your broker, or complete
and return the enclosed Account Application. Minimum investment is $1,000. About
this Prospectus Please read this Prospectus before investing. It is designed to
provide you with information you ought to know before investing and to help you
decide if the Fund's goals match your own. Keep this document for future
reference. A Statement of Additional Information for the Fund (dated January 31,
1995) has been filed with the Securities and Exchange Commission and is
incorporated by reference. This free Statement is available upon request from
the Fund: 800-368-2748.
================================================================================
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED
BY THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION,
NOR HAS THE FEDERAL OR ANY STATE SECURITIES COMMISSION PASSED ON THE ACCURACY OR
ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL
OFFENSE.
SHARES OF THE FUND ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED OR
ENDORSED BY, ANY BANK, AND ARE NOT FEDERALLY INSURED BY THE FDIC, THE FEDERAL
RESERVE BOARD, OR ANY OTHER AGENCY. WHEN INVESTORS SELL SHARES OF THE FUND, THE
VALUE MAY BE HIGHER OR LOWER THAN THE AMOUNT ORIGINALLY PAID.
<PAGE>
HIGHLIGHTS
INVESTMENT OBJECTIVES AND POLICIES
Calvert Social Investment Fund is designed to provide opportunities for
investors seeking growth of capital or current income through investment in
enterprises that make a significant contribution to society through their
products and services and through the way they do business. The Money Market
Portfolio seeks to provide the highest level of current income, consistent with
liquidity, safety and stability, through investment in money market instruments,
including securities issued or guaranteed by agencies of the U.S. Government and
repurchase agreements with banks and brokers secured by such instruments,
selected in accordance with the Fund's investment and social criteria. The Money
Market Portfolio is designed for short-term cash management and for investors
needing stability of principal. The Money Market Portfolio seeks to maintain a
constant net asset value of $1.00 per share. The Managed Growth Portfolio seeks
to achieve a total return above the rate of inflation through an actively
managed, diversified portfolio of common and preferred stocks, bonds and money
market instruments which offer income and capital growth opportunity and which
satisfy the investment and social concern criteria established by the Fund. The
Bond Portfolio seeks to provide as high a level of current income as is
consistent with prudent investment risk and preservation of capital through
investment in bonds and other straight debt securities, selected pursuant to the
Fund's investment and social criteria. The Equity Portfolio seeks growth of
capital through investment in the equity securities of issuers within industries
perceived to offer opportunities for potential capital appreciation and which
satisfy the Fund's investment and social criteria. There can be no assurance
that the Fund will be successful in meeting its investment objectives or that
the Money Market Portfolio will maintain a constant net asset value of $1.00 per
share. For a further description of the Fund's four Portfolios and discussion of
the Fund's investment techniques, see "Investment Objectives and Policies,"
"Investment Selection Process" and "Additional Investment Policies."
EXPERTISE IN THE MANAGEMENT OF THE FUND
The Fund's Investment Advisor is Calvert Asset Management Company, Inc., a
subsidiary of Acacia Mutual Life Insurance Company of Washington, D.C. U.S.
Trust Company of Boston is the Investment Sub-Advisor to the Bond Portfolio,
Sub-Advisors for the Managed Growth Portfolio include U.S. Trust, NCM Capital
Management Group, Inc., Brown Capital Management, Inc., Fortaleza Asset
Management, Inc., and Frontier Capital Management Company, Inc. CAM manages a
portion of the fixed-income assets. Loomis, Sayles & Company, L.P. ("Loomis,
Sayles") is the Investment Sub-Advisor to the Equity Portfolio. (See
"Management of the Fund," "Investment Selection Process," and "Additional
Investment Policies.")
DIVERSIFICATION OF INVESTMENTS
By pooling the funds of many investors with similar investment objectives, the
Fund gives each an opportunity to benefit from a broadly diversified portfolio,
a benefit available ordinarily only to investors with substantial capital.
Although the Fund's social criteria and consideration tend to limit the
availability of investment opportunities more than is customary with other
investment companies, the Advisors of the Fund believe that there are sufficient
investment opportunities to permit full investment among issuers which satisfy
the Fund's investment and social investment objectives. (See Statement of
Additional Information, "Investment Selection Process.") For a discussion of the
risks which may be associated with investments in repurchase and reverse
repurchase agreements, privately placed securities, non-investment grade debt
securities, the securities of foreign issuers, and options and futures
contracts, see "Additional Investment Policies" and in the Statement of
Additional Information, "Investment Objectives and Policies" and "Portfolio
Transactions."
PURCHASE OF FUND SHARES
There is no sales charge on shares of the Money Market Portfolio. Class A shares
of the Managed Growth, Bond, and Equity Portfolios are sold subject to a
front-end sales charge which varies according to the dollar amount of shares
purchased (see "How to Buy Shares").
Purchases of shares of the Fund may be made by mail, bank wire, electronic funds
transfer, through the Fund's branch office or through brokers. (See "How to Buy
Shares.")
REDEMPTION OF FUND SHARES
Shares of each Portfolio may be redeemed at any time at no charge at the net
asset value next determined after a proper redemption request is received by the
Fund's transfer agent. Investors may redeem shares by mail or by telephone,
through brokers, or, for investors in the Money Market Portfolio, by writing
drafts in the amount of $250 or more against their account balances. (See "How
to Sell Your Shares.")
GENERAL INFORMATION
The Fund is an open-end, diversified management investment company organized as
a Massachusetts business trust under a Declaration of Trust dated December 14,
1981, and is a series company. The Money Market and Managed Growth Portfolios
commenced operations in October 1982, and the Bond and Equity Portfolios
commenced operations in August 1987. The Fund's authorized capital and shares
being offered by this Prospectus consist of an unlimited number of shares of
beneficial interest of no par value which may be issued in series. Shares have
equal rights with all other shares of the same class and series as to voting,
dividends and liquidation.
FUND EXPENSES
<TABLE>
<CAPTION>
Money Market Portfolio
Class A
<S> <C>
A. Shareholder Transaction Costs
Maximum Sales Charge on Purchases (as a None
percentage of offering price)
Contingent Deferred Sales Charge None
B. Annual Fund Operating Expenses<F1>
(as a percentage of net assets, net of any
applicable expense reimbursement/fee waiver)
Management Fees 0.50%
Rule 12b-1 Service and Distribution Fees
0.00%
Other Expenses 0.37%
Total Fund Operating Expenses 0.87%
<FN>
<F1>
Expense ratios are based on expenses for fiscal year 1994, except that ratios
for the Class A shares of the Bond and Equity Portfolios have been restated to
reflect expenses anticipated in the current fiscal year.
</FN>
</TABLE>
<TABLE>
<CAPTION>
Managed Growth Portfolio
Class A
<S> <C>
A. Shareholder Transaction Costs
Maximum Sales Charge on Purchases (as a 4.75%
percentage of offering price)
Contingent Deferred Sales Charge None
B. Annual Fund Operating Expenses<F1>
(as a percentage of net assets, net of any
applicable expense reimbursement/fee waiver)
Management Fees 0.70%
Rule 12b-1 Service and Distribution Fees
0.25%
Other Expenses 0.31%
Total Fund Operating Expenses 1.26%
<FN>
<F1>
Expense ratios are based on expenses for fiscal year 1994, except that ratios
for the Class A shares of the Bond and Equity Portfolios have been restated to
reflect expenses anticipated in the current fiscal year.
</FN>
</TABLE>
<TABLE>
<CAPTION>
Managed Growth Portfolio
Class C
<S> <C>
A. Shareholder Transaction Costs
Maximum Sales Charge on Purchases (as a None
percentage of offering price)
Contingent Deferred Sales Charge None
B. Annual Fund Operating Expenses<F1>
(as a percentage of net assets, net of any
applicable expense reimbursement/fee waiver)
Management Fees 0.70%
Rule 12b-1 Service and Distribution Fees
1.00%
Other Expenses 0.84%
Total Fund Operating Expenses 2.54%
<FN>
<F1>
Expense ratios are based on expenses for fiscal year 1994, except that ratios
for the Class A shares of the Bond and Equity Portfolios have been restated to
reflect expenses anticipated in the current fiscal year.
</FN>
</TABLE>
<TABLE>
<CAPTION>
Bond Portfolio
Class A
<S> <C>
A. Shareholder Transaction Costs
Maximum Sales Charge on Purchases (as a 3.75%
percentage of offering price)
Contingent Deferred Sales Charge None
B. Annual Fund Operating Expenses<F1>
(as a percentage of net assets, net of any
applicable expense reimbursement/fee waiver)
Management Fees 0.65%
Rule 12b-1 Service and Distribution Fees
0.25%
Other Expenses 0.37%
Total Fund Operating Expenses 1.27%
<FN>
<F1>
Expense ratios are based on expenses for fiscal year 1994, except that ratios
for the Class A shares of the Bond and Equity Portfolios have been restated to
reflect expenses anticipated in the current fiscal year.
</FN>
</TABLE>
<TABLE>
<CAPTION>
Bond Portfolio
Class C
<S> <C>
A. Shareholder Transaction Costs
Maximum Sales Charge on Purchases (as a None
percentage of offering price)
Contingent Deferred Sales Charge None
B. Annual Fund Operating Expenses<F1>
(as a percentage of net assets, net of any
applicable expense reimbursement/fee waiver)
Management Fees 0.65%
Rule 12b-1 Service and Distribution Fees
1.00%
Other Expenses 0.89%
Total Fund Operating Expenses 2.54%
<FN>
<F1>
Expense ratios are based on expenses for fiscal year 1994, except that ratios
for the Class A shares of the Bond and Equity Portfolios have been restated to
reflect expenses anticipated in the current fiscal year.
</FN>
</TABLE>
<TABLE>
<CAPTION>
Equity Portfolio
Class A
<S> <C>
A. Shareholder Transaction Costs
Maximum Sales Charge on Purchases (as a 4.75%
percentage of offering price)
Contingent Deferred Sales Charge None
B. Annual Fund Operating Expenses<F1>
(as a percentage of net assets, net of any
applicable expense reimbursement/fee waiver)
Management Fees 0.70%
Rule 12b-1 Service and Distribution Fees
0.25%
Other Expenses 0.48%
Total Fund Operating Expenses 1.43%
<FN>
<F1>
Expense ratios are based on expenses for fiscal year 1994, except that ratios
for the Class A shares of the Bond and Equity Portfolios have been restated to
reflect expenses anticipated in the current fiscal year.
</FN>
</TABLE>
<TABLE>
<CAPTION>
Equity Portfolio
Class C
<S> <C>
A. Shareholder Transaction Costs
Maximum Sales Charge on Purchases (as a None
percentage of offering price)
Contingent Deferred Sales Charge None
B. Annual Fund Operating Expenses<F1>
(as a percentage of net assets, net of any
applicable expense reimbursement/fee waiver)
Management Fees 0.70%
Rule 12b-1 Service and Distribution Fees
1.00%
Other Expenses 1.23%
Total Fund Operating Expenses 2.93%
<FN>
<F1>
Expense ratios are based on expenses for fiscal year 1994, except that ratios
for the Class A shares of the Bond and Equity Portfolios have been restated to
reflect expenses anticipated in the current fiscal year.
</FN>
</TABLE>
<TABLE>
<CAPTION>
C. Example: You would pay the following expenses on a $1,000 investment,
assuming (1) 5% annual return and (2) redemption at the end of each period:
Fund 1 Year 3 Years 5 Years 10 Years
<S> <C> <C> <C> <C>
Money Market Portfolio
Class A $9 $28 $48 $107
Managed Growth Portfolio
Class A<F2> $60 $86 $113 $193
Class C $26 $79 $135 $288
Bond Portfolio
Class A<F2> $50 $76 $105 $185
Class C $26 $79 $135 $288
Equity Portfolio
Class A<F2> $61 $91 $122 $211
Class C $30 $91 $154 $325
<FN>
<F2>
Assumes payment of maximum initial sales charge at time of purchase.
</FN>
</TABLE>
Explanation of Table: The purpose of the table is to assist you in understanding
the various costs and expenses that an investor in the Fund may bear directly
(shareholder transaction costs) or indirectly (annual fund operating expenses).
A. Shareholder Transaction Costs are charges you pay when you buy or sell shares
of the Fund. See "Reduced Sales Charges" at Exhibit A to see if you qualify for
possible reductions in the sales charge. If you request a wire redemption of
less than $1,000, you will be charged a $5 wire fee.
B. Annual Fund Operating Expenses. Management Fees are paid by the Fund to
Calvert Asset Management Company, Inc. ("Investment Advisor") for managing the
Fund's investments and business affairs. Management fees include the
Sub-Advisory fee paid by the Investment Advisor to the Sub-Advisors of the
Portfolios. The Management fees for the Equity Portfolio are subject to a
performance adjustment after June 1995, which could cause the fee to be as
high as 0.90% or as low as 0.50%, depending on the Portfolio's performance
relative to the Standard & Poor 500 Composite Index. The Management fees for the
Managed Growth Portfolio are subject to a performance adjustment, after January
1, 1997, which could cause the fee to be as high as 0.85% or as low as 0.55%,
depending on the Portfolio's performance relative to the Sub-Advisor's Relevant
Index. Fund incurs Other Expenses for maintaining shareholder records,
furnishing shareholder statements and reports, and other services.
Management Fees and Other Expenses have already been reflected in the Fund's
yield or share price and are not charged directly to individual shareholder
accounts. For fiscal year 1994, the Investment Advisor reimbursed a portion of
the expenses of the Money Market Portfolio. If the Advisor had not made such
reimbursements, the expenses of the Money Market Portfolio as a percentage of
average daily net assets would have been 1.05%. The Advisor also reimbursed
expenses of the Class C shares of the Managed Growth, Bond, and Equity
Portfolios, due to expense limitations. If the Advisor had not made such
reimbursements, the annualized expenses of the Class C Shares of the
Managed Growth, Bond, and Equity Portfolios, as a percentage of average
daily net assets, would have been 3.93%, 12.01%, and 7.35%, respectively.
Please refer to the section "Management of the Fund" for further information.
The Fund's Rule 12b-1 fees include an asset-based sales charge. Thus, it is
possible that long-term shareholders in the Fund may pay more in total sales
charges than the economic equivalent of the maximum front-end sales charge
permitted by rules of the National Association of Securities Dealers, Inc.
C. Example of Expenses. The example, which is hypothetical, should not be
considered a representation of past or future expenses. Actual expenses and
return may be higher or lower than those shown.
FINANCIAL HIGHLIGHTS
The following tables provide information about the financial history of each
Portfolio's Class A shares. They express the information in terms of a single
Class A share outstanding for the respective Portfolio throughout each period.
Information for Class C shares is presented only since their inception on March
1, 1994. The tables have been audited by the independent accountants, whose
report is included in the Annual Report to Shareholders of the Fund. The tables
should be read in conjunction with the financial statements and their related
notes. The current Annual Report to Shareholders is incorporated by reference
into the Statement of Additional Information
<TABLE>
<CAPTION>
Money Market Portfolio Year Ended September 30,
========================
1994 1993
<S> <C> <C>
Net asset value, beginning of year ...................... $1.00 $1.00
Income from investment operations
Net investment income ................................ .031 .025
Distributions to shareholders
Dividends from net investment income ................. (.031) (.025)
Net asset value, end of year ......................... $1.00 $1.00
Total return<F3> ........................................ 3.13% 2.56%
Ratio of expenses to average net assets .............. .87% .87%
Ratio of net income to average net assets ............ 3.07% 2.54%
Increase reflected in net income ratio due to
expense reimbursement ........................... .18% .20%
Net assets, end of year ........................... $143,779,085 $144,984,787
Number of shares outstanding at end of year (in
thousands) ........................................ 143,826 145,031
<FN>
<F3>
Total Return is not audited for years prior to 1994.
</FN>
</TABLE>
<TABLE>
<CAPTION>
Money Market Portfolio Year Ended September 30,
========================
1992
<S> <C>
Net asset value, beginning of year ...........................$1.00
Income from investment operations
Net investment income ..........................................037
Distributions to shareholders
Dividends from net investment income .........................(.037)
Net asset value, end of year .................................$1.00
Total return<F3> ............................................. 3.79%
Ratio of expenses to average net assets ....................... .87%
Ratio of net income to average net assets .....................3.74%
Increase reflected in net income ratio due to
expense reimbursement ..................................... .16%
Net assets, end of year $171,339,526
Number of shares outstanding at end of year (in
thousands) 171,407
<FN>
<F3>
Total Return is not audited for years prior to 1994.
</FN>
</TABLE>
<TABLE>
<CAPTION>
Money Market Portfolio Year Ended September 30,
========================
1991 1990
<S> <C> <C>
Net asset value, beginning of year $1.00 $1.00
Income from investment operations
Net investment income .061 .076
Distributions to shareholders
Dividends from net investment income (.061) (.076)
Net asset value, end of year $1.00 $1.00
Total return<F3> 6.32% 7.85%
Ratio of expenses to average net assets .87% .85%
Ratio of net income to average net assets 6.12% 7.53%
Increase reflected in net income ratio due to
expense reimbursement .13% .14%
Net assets, end of year $193,947,095 $182,148,038
Number of shares outstanding at end of year (in
thousands) 194,015 182,193
<FN>
<F3>
Total Return is not audited for years prior to 1994.
</FN>
</TABLE>
<TABLE>
<CAPTION>
Money Market Portfolio Year Ended September 30,
========================
1989 1988
<S> <C> <C>
Net asset value, beginning of year $1.00 $1.00
Income from investment operations
Net investment income .084 .067
Distributions to shareholders
Dividends from net investment income (.084) (.067)
Net asset value, end of year $1.00 $1.00
Total return<F3> 6.47% 5.31%
Ratio of expenses to average net assets .85% .84%
Ratio of net income to average net assets 8.40% 6.47%
Increase reflected in net income ratio due to
expense reimbursement .17% .27%
Net assets, end of year $139,662,354 $81,252,613
Number of shares outstanding at end of year (in
thousands) 139,707 81,278
<FN>
<F3>
Total Return is not audited for years prior to 1994.
</FN>
</TABLE>
<TABLE>
<CAPTION>
Money Market Portfolio Year Ended September 30,
========================
1987
<S> <C>
Net asset value, beginning of year $1.00
Income from investment operations
Net investment income .057
Distributions to shareholders
Dividends from net investment income (.057)
Net asset value, end of year $1.00
Total return<F3> 4.62%
Ratio of expenses to average net assets .86%
Ratio of net income to average net assets 5.52%
Increase reflected in net income ratio due to
expense reimbursement .24%
Net assets, end of year $66,284,868
Number of shares outstanding at end of year (in
thousands) 66,288
<FN>
<F3>
Total Return is not audited for years prior to 1994.
</FN>
</TABLE>
<TABLE>
<CAPTION>
Money Market Portfolio Year Ended September 30,
========================
1986 1985
<S> <C> <C>
Net asset value, beginning of year $1.00 $1.00
Income from investment operations
Net investment income .067 .084
Distributions to shareholders
Dividends from net investment income (.067) (.084)
Net asset value, end of year $1.00 $1.00
Total return<F3> 4.77% 5.44%
Ratio of expenses to average net assets .84% .81%
Ratio of net income to average net assets 6.51% 8.03%
Increase reflected in net income ratio due to
expense reimbursement .34% .46%
Net assets, end of year $58,248,982 $49,509,472
Number of shares outstanding at end of year (in
thousands) 58,248 49,509
<FN>
<F3>
Total Return is not audited for years prior to 1994.
</FN>
</TABLE>
<TABLE>
<CAPTION>
Managed Growth Portfolio Year Ended September 30,
========================
Class C Shares
From Inception Class A Shares
(March 1, 1994) 1994
<S> <C> <C>
Net asset value, beginning of year $30.43 $30.85
Income from investment operations
Net investment income .51 .93
Net realized and unrealized gain (loss
investments (1.66) (1.83)
Total from investment operations (1.15) (1.83)
Distributions to shareholders
Dividends from net investment income (.63) (.95)
Distribution from capital gains -- (.23)
Total distributions (.63) (1.18)
Total increase (decrease) in net asset value (1.78) (2.08)
Net asset value, end of year $28.6 $28.77
Total return<F4> (3.30)% (2.95)%
Ratio of expenses to average net assets 2.47%(a) 1.24%
Ratio of net income to average net assets 1.83%(a) 3.14%
Increase reflected in net income ratio due to
expense reimbursement 1.46%(a) --
Portfolio turnover 34% 34%
Net assets, end of year $1,892,512 $512,026,969
Number of shares outstanding at end of year (in
thousands) 66 17,800
<FN>
<F4>
Total return is not annualized and does not reflect the deduction of Class A
front-end sales charge.
Total return is not audited for years prior to 1989.
(a) Annualized
</FN>
</TABLE>
<TABLE>
<CAPTION>
Managed Growth Portfolio Year Ended September 30,
==========================
Class A Shares
1993
<S> <C>
Net asset value, beginning of year $29.35
Income from investment operations
Net investment income .95
Net realized and unrealized gain (loss) on
investments 1.91
Total from investment operations 2.86
Distributions to shareholders
Dividends from net investment income (.95)
Distribution from capital gains (.41)
Total distributions (1.36)
Total increase (decrease) in net asset value 1.50
Net asset value, end of year $30.85
Total return<F4> 9.98%
Ratio of expenses to average net assets 1.25%
Ratio of net income to average net assets 3.25%
Increase reflected in net income ratio due to
expense reimbursement --
Portfolio turnover 33%
Net assets, end of year $536,169,525
Number of shares outstanding at end of year (in
thousands) 17,378
<FN>
<F4>
Total return is not annualized and does not reflect the deduction of Class A
front-end sales charge.
Total return is not audited for years prior to 1989.
(a) Annualized
</FN>
</TABLE>
<TABLE>
<CAPTION>
Managed Growth Portfolio Class A Shares
Year Ended September 30,
========================
1992 1991
<S> <C> <C>
Net asset value, beginning of year $28.42 $25.87
Income from investment operations
Net investment income 1.07 1.20
Net realized and unrealized gain (loss) on
investments 1.82 3.10
Total from investment operations 2.89 4.30
Distributions to shareholders
Dividends from net investment income (1.95) (1.00)
Distribution from capital gains (.01) (.75)
Total distributions (1.96) (1.75)
Total increase (decrease) in net asset value .93 2.55
Net asset value, end of year $29.35 $28.42
Total return<F4> 10.71% 17.51%
Ratio of expenses to average net assets 1.28% 1.31%
Ratio of net income to average net assets 3.90% 4.73%
Increase reflected in net income ratio due to
expense reimbursement -- --
Portfolio turnover 14% 25%
Net assets, end of year $419,513,646 $329,922,298
Number of shares outstanding at end of year (in
thousands) 14,292 11,609
<FN>
<F4>
Total return is not annualized and does not reflect the deduction of Class A
front-end sales charge.
Total return is not audited for years prior to 1989.
(a) Annualized
</FN>
</TABLE>
<TABLE>
<CAPTION>
Managed Growth Portfolio Class A Shares
Year Ended September 30,
========================
1990 1989
<S> <C> <C>
Net asset value, beginning of year $27.72 $25.04
Income from investment operations
Net investment income 1.09 1.15
Net realized and unrealized gain (loss) on
investments (1.85) 2.97
Total from investment operations (.76) 4.12
Distributions to shareholders
Dividends from net investment income (.63) (.98)
Distribution from capital gains (.46) (.46)
Total distributions (1.09) (1.44)
Total increase (decrease) in net asset value (1.85) 2.68
Net asset value, end of period $25.87 $27.72
Total return<F4> (2.87)% 17.31%
Ratio of expenses to average net assets 1.30% 1.29%
Ratio of net income to average net assets 4.85% 4.49%
Increase reflected in net income ratio due to
expense reimbursement -- --
Portfolio turnover 24% 34%
Net assets, end of year $242,616,980 $212,178,112
Number of shares outstanding at end of year (in
thousands) 9,377 7,654
<FN>
<F4>
Total return is not annualized and does not reflect the deduction of Class A
front-end sales charge.
Total return is not audited for years prior to 1989.
(a) Annualized
</FN>
</TABLE>
<TABLE>
<CAPTION>
Managed Growth Portfolio Class A Shares
Year Ended September
30,
======================
1988
<S> <C>
Net asset value, beginning of year $27.44
Income from investment operations
Net investment income 1.09
Net realized and unrealized gain (loss) on
investments (1.91)
Total from investment operations (.82)
Distributions to shareholders
Dividends from net investment income (1.08)
Distribution from capital gains (.50)
Total distributions (1.58)
Total increase (decrease) in net asset value (2.40)
Net asset value, end of period $25.04
Total return<F4> (2.48)%
Ratio of expenses to average net assets 1.34%
Ratio of net income to average net assets 4.30%
Increase reflected in net income ratio due to
expense reimbursement --
Portfolio turnover 46%
Net assets, end of year $171,930,639
Number of shares outstanding at end of year (in
thousands) 6,866
<FN>
<F4>
Total return is not annualized and does not reflect the deduction of Class A
front-end sales charge.
Total return is not audited for years prior to 1989.
(a) Annualized
</FN>
</TABLE>
<TABLE>
<CAPTION>
Managed Growth Portfolio Class A Shares
Year Ended September 30,
========================
1987 1986
<S> <C> <C>
Net asset value, beginning of year $23.25 $18.92
Income from investment operations
Net investment income .65 .62
Net realized and unrealized gain (loss) on investments
4.35 4.64
Total from investment operations 5.00 5.26
Distributions to shareholders
Dividends from net investment income (.70) (.77)
Distribution from capital gains (.11) (.16)
Total distributions (.81) (.93)
Total increase (decrease) in net asset value 4.19 4.33
Net asset value, end of year $27.44 $23.25
Total return<F4> 22.04% 28.61%
Ratio of expenses to average net assets 1.29% 1.30%
Ratio of net income to average net assets 2.82% 3.42%
Increase reflected in net income ratio due to
expense reimbursement -- --
Portfolio turnover 14% 24%
Net assets, end of year $174,217,805 $86,404,783
Number of shares outstanding at end of year (in
thousands) 6,348 3,761
<FN>
<F4>
Total return is not annualized and does not reflect the deduction of Class A
front-end sales charge.
Total return is not audited for years prior to 1989.
(a) Annualized
</FN>
</TABLE>
<TABLE>
<CAPTION>
Managed Growth Portfolio Class A Shares
Year Ended September
30,
======================
1985
<S> <C>
Net asset value, beginning of year $17.03
Income from investment operations
Net investment income .92
Net realized and unrealized gain (loss) on investments
1.97
Total from investment operations 2.89
Distributions to shareholders
Dividends from net investment income (1.00)
Distribution from capital gains --
Total distributions (1.00)
Total increase (decrease) in net asset value 1.89
Net asset value, end of year $18.92
Total return<F4> 17.04%
Ratio of expenses to average net assets 1.30%
Ratio of net income to average net assets 5.96%
Increase reflected in net income ratio due to
expense reimbursement --
Portfolio turnover 54%
Net assets, end of year $25,622,145
Number of shares outstanding at end of year (in
thousands) 1,345
<FN>
<F4>
Total return is not annualized and does not reflect the deduction of Class A
front-end sales charge.
Total return is not audited for years prior to 1989.
(a) Annualized
</FN>
</TABLE>
<TABLE>
<CAPTION>
Bond Portfolio Year Ended September 30,
========================
Class C Shares
From Inception Class A Shares
(March 1, 1994) 1994
<S> <C> <C>
Net asset value, beginning of year $16.71 $17.77
Income from investment operations
Net investment income .45 .94
Net realized and unrealized gain (loss) on
investments (1.23) (1.81)
Total from investment operations (.78) (.87)
Distributions to shareholders
Dividends from net investment income (.50) (.94)
Distribution from capital gains -- (.47)
Total distributions (.50) (1.41)
Total increase (decrease) in net asset value (1.28) (2.28)
Net asset value, end of year $15.43 $15.49
Total return<F4> (4.13)% (5.18)%
Ratio of expenses to average net assets 2.41%(a) 1.10%
Ratio of net income to average net assets 4.63%(a) 5.64%
Increase reflected in net income ratio due
to expense reimbursement 9.60%(a) --
Portfolio turnover 19% 19%
Net assets, end of year $314,804 $61,572,858
Number of shares outstanding at end of year
(in thousands) 20 3,976
<FN>
<F4>
Total return is not annualized and does not reflect the deduction of Class A
front-end sales charge.
Total return is not audited for years prior to 1989.
(a) Annualized
</FN>
</TABLE>
<TABLE>
<CAPTION>
Bond Portfolio Year Ended September
30,
======================
Class A Shares
1993
<S> <C>
Net asset value, beginning of year $17.05
Income from investment operations
Net investment income 1.08
Net realized and unrealized gain (loss) on
investments .85
Total from investment operations 1.93
Distributions to shareholders
Dividends from net investment income (1.08)
Distribution from capital gains (.13)
Total distributions (1.21)
Total increase (decrease) in net asset value .72
Net asset value, end of year $17.77
Total return<F4> 11.89%
Ratio of expenses to average net assets .79%
Ratio of net income to average net assets 6.33%
Increase reflected in net income ratio due to
expense reimbursement .20%
Portfolio turnover 28%
Net assets, end of year $67,134,129
Number of shares outstanding at end of year (in
thousands) 3,778
<FN>
<F4>
Total return is not annualized and does not reflect the deduction of Class A
front-end sales charge.
Total return is not audited for years prior to 1989.
(a) Annualized
</FN>
</TABLE>
<TABLE>
<CAPTION>
Bond Portfolio Class A Shares
Year Ended September 30,
========================
1992 1991
<S> <C> <C>
Net asset value, beginning of period $16.48 $15.34
Income from investment operations
Net investment income 1.15 1.21
Net realized and unrealized gain on investments
.78 1.15
Total from investment operations 1.93 2.36
Distributions to shareholders
Dividends from net investment income (1.15) (1.21)
Distribution from capital gains (.21) (.01)
Total distributions (1.36) (1.22)
Total increase in net asset value .57 1.14
Net asset value, end of period $17.05 $16.48
Total return<F4> 12.29% 15.95%
Ratio of expenses to average net assets .75% .77%
Ratio of net income to average net assets 6.90% 7.63%
Increase reflected in net investment income ratio
due to expense reimbursement .24% .27%
Portfolio turnover 29% 24%
Net assets, end of period $50,572,499 $33,258,675
Number of shares outstanding at end of period (in
thousands) 2,965 2,018
<FN>
<F4>
Total return is not annualized and does not reflect the deduction of Class A
front-end sales charge.
Total return is not audited for years prior to 1989.
(a) Annualized
</FN>
</TABLE>
<TABLE>
<CAPTION>
Bond Portfolio Year Ended September 30,
========================
1990 1989
<S> <C> <C>
Net asset value, beginning of period $15.71 $15.43
Income from investment operations
Net investment income 1.24 1.31
Net realized and unrealized gain (loss) on
investments (.32) .30
Total from investment operations .92 1.61
Distributions to shareholders
Dividends from net investment income (1.24) (1.29)
Distribution from capital gains (.05) (.04)
Total distributions (1.29) (1.33)
Total increase (decrease) in net asset value (.37) .28
Net asset value, end of period $15.34 $15.71
Total return<F4> 6.09% 10.93%
Ratio of expenses to average net assets .65% .17%
Ratio of net income to average net assets 8.02% 8.53%
Increase reflected in net investment income ratio
due to expense reimbursement .45% .92%
Portfolio turnover 22% 50%
Net assets, end of period $23,298,395 $12,791,636
Number of shares outstanding at end of period (in
thousands) 1,519 814
<FN>
<F4>
Total return is not annualized and does not reflect the deduction of Class A
front-end sales charge.
Total return is not audited for years prior to 1989.
(a) Annualized
</FN>
</TABLE>
<TABLE>
<CAPTION>
Class A Shares
Class A Shares From Inception
Year Ended Sept. 30, (August 24, 1987)
==========================================
Bond Portfolio 1988 to Sept. 30, 1987
<S> <C> <C>
Net Asset Value, beginning of period $14.81 $15.00
Income from investment operations
Net investment income 1.16 .04
Net realized and unrealized gain (loss) on
investments .62 (.20)
Total from investment operations 1.78 (.16)
Distributions to shareholders
Dividends from net investment income (1.16) (.03)
Distribution from capital gains -- --
Total distributions (1.16) (.03)
Total increase (decrease) in net asset value .62 (.19)
Net asset value, end of period $15.43 $14.81
Total return<F4> 12.32% (13.56)%(a)
Ratio of expenses to average net assets -- .50%(a)
Ratio of net income to average net assets 8.14% .34%(a)
Increase reflected in net investment income ratio
due to expense reimbursement 1.56% 1.16%(a)
Portfolio turnover 27% --
Net assets, end of period $5,235,169 $344,306
Number of shares outstanding at end of period (in
thousands) 339 23
<FN>
<F4>
Total return is not annualized and does not reflect the deduction of Class A
front-end sales charge.
Total return is not audited for years prior to 1989.
(a) Annualized
</FN>
</TABLE>
<TABLE>
<CAPTION>
Equity Portfolio Year Ended September 30,
========================
Class C Shares
From Inception Class A Share
(March 1, 1994) 1994
<S> <C> <C>
Net asset value, beginning of year $22.12 $21.43
Income from investment operations
Net investment income (.06) .13
Net realized and unrealized gain (loss) on
investments (2.08) (1.04)
Total from investment operations (2.14) (.91)
Distributions to shareholders
Dividends from net investment income -- (.28)
Distribution from capital gains -- (.11)
Total distributions -- (.39)
Total increase (decrease) in net asset value (2.14) (1.30)
Net asset value, end of year $19.98 $20.13
Total return<F4> (9.14)% (4.33)%
Ratio of expenses to average net assets 2.75%(a) 1.27%
Ratio of net income to average net assets (1.06)%(a) .65%
Increase reflected in net income ratio due
to expense reimbursement 4.60%(a) --
Portfolio turnover 94% 94%
Net assets, end of year $670,245 $92,970,422
Number of shares outstanding at end of year
(in thousands) 34 4,620
<FN>
<F4>
Total return is not annualized and does not reflect the deduction of Class A
front-end sales charge.
Total return is not audited for years prior to 1989.
(a) Annualized
</FN>
</TABLE>
<TABLE>
<CAPTION>
Equity Portfolio Class A Shares
Year Ended September 30,
========================
1993 1992
<S> <C> <C>
Net asset value, beginning of year $20.03 $18.89
Income from investment operations
Net investment income .21 .17
Net realized and unrealized gain on investments
1.36 1.20
Total from investment operations 1.57 1.37
Distributions to shareholders
Dividends from net investment income (.17) (.23)
Distribution from capital gains -- --
Total distributions (.17) (.23)
Total increase in net asset value 1.40 1.14
Net asset value, end of year $21.43 $20.03
Total return<F4> 7.82% 7.36%
Ratio of expenses to average net assets 1.13% 1.17%
Ratio of net income to average net assets 1.06% 1.02%
Increase reflected in net investment income ratio
due to expense reimbursement -- --
Portfolio turnover 43% 24%
Net assets, end of year $85,042,192 $64,628,809
Number of shares outstanding at end of year (in
thousands) 3,968 3,226
<FN>
<F4>
Total return is not annualized and does not reflect the deduction of Class A
front-end sales charge.
Total return is not audited for years prior to 1989.
(a) Annualized
</FN>
</TABLE>
<TABLE>
<CAPTION>
Equity Portfolio Class A Shares
Year Ended September
30,
======================
1991
<S> <C>
Net asset value, beginning of year $15.86
Income from investment operations
Net investment income .44
Net realized and unrealized gain on investments
2.96
Total from investment operations 3.40
Distributions to shareholders
Dividends from net investment income (.37)
Distribution from capital gains --
Total distributions (.37)
Total increase in net asset value 3.03
Net asset value, end of year $18.89
Total return<F4> 21.88%
Ratio of expenses to average net assets 1.04%
Ratio of net income to average net assets 1.94%
Increase reflected in net investment income ratio
due to expense reimbursement .18%
Portfolio turnover 27%
Net assets, end of year $42,642,434
Number of shares outstanding at end of year (in
thousands) 2,258
<FN>
<F4>
Total return is not annualized and does not reflect the deduction of Class A
front-end sales charge.
Total return is not audited for years prior to 1989.
(a) Annualized
</FN>
</TABLE>
<TABLE>
<CAPTION>
Equity Portfolio Class A Shares
Year Ended September 30,
=========================
1990 1989
<S> <C> <C>
Net asset value, beginning of year $18.07 $14.58
Income from investment operations
Net investment income .32 .40
Net realized and unrealized gain (loss) on
investments (2.24) 3.40
Total from investment operations (1.92) 3.80
Distributions to shareholders
Dividends from net investment income (.24) (.31)
Distribution from capital gains (.05) --
Total distributions (.29) (.31)
Total increase (decrease) in net asset value (2.21) 3.49
Net asset value, end of year $15.86 $18.07
Total return<F4> (10.80)% 26.69%
Ratio of expenses to average net assets .78% .21%
Ratio of net income to average net assets 2.64% 2.48%
Increase reflected in net investment income ratio
due to expense reimbursement .50% 1.17%
Portfolio turnover 31% 8%
Net assets, end of year $22,212,293 $7,927,101
Number of shares outstanding at end of year (in
thousands) 1,401 439
<FN>
<F4>
Total return is not annualized and does not reflect the deduction of Class A
front-end sales charge.
Total return is not audited for years prior to 1989.
(a) Annualized
</FN>
</TABLE>
<TABLE>
<CAPTION>
Class A Shares
Class A Shares From Inception
Year Ended Sept. (August 24, 1987)
Equity Portfolio 30, 1988 to Sept. 30, 1987
============================================
<S> <C> <C>
Net asset value, beginning of period $15.33 $15.00
Income from investment operations
Net investment income .87 .02
Net realized and unrealized gain (loss) on
investments (1.53) .31
Total from investment operations (.66) .33
Distributions to shareholders
Dividends from net investment income (.08) --
Distribution from capital gains (.01) --
Total distributions (.09) --
Total increase (decrease) in net asset value (.75) .33
Net asset value, end of period $14.58 $15.33
Total return<F4> (4.26)% 25.56%(a)
Ratio of expenses to average net assets -- .50%(a)
Ratio of net income to average net assets 2.85% .31%(a)
Increase reflected in net investment income ratio
due to expense reimbursement 2.49% 1.50%(a)
Portfolio turnover 23% --
Net assets, end of period $1,710,838 $264,653
Number of shares outstanding at end of period (in
thousands) 117 17
<FN>
<F4>
Total return is not annualized and does not reflect the deduction of Class A
front-end sales charge.
Total return is not audited for years prior to 1989.
(a) Annualized
</FN>
</TABLE>
INVESTMENT OBJECTIVES AND POLICIES
The Fund is designed for individual and institutional investors, including ERISA
fiduciaries, seeking growth of capital or current income through investment in
enterprises that make a significant contribution to society through their
products and services and through the way they do business. The Managed Growth
Portfolio is designed for long-term investment. The Money Market Portfolio is
designed for short-term cash management and stability of principal. The Bond
Portfolio is designed for current income and preservation of capital. The Equity
Portfolio is designed for capital growth.
Money Market Portfolio
The Money Market Portfolio seeks to provide the highest level of current income,
consistent with liquidity, safety and security of capital, through investment in
money market instruments, including repurchase agreements with recognized
securities dealers and banks secured by such instruments, and reverse repurchase
agreements, all selected in accordance with the Fund's investment and social
criteria. The Money Market Portfolio attempts to maintain a constant net asset
value of $1.00 per share.
The Money Market Portfolio invests only in high grade, short-term money market
instruments which may include: obligations issued or guaranteed as to principal
by the United States Government, its agencies and instrumentalities; U.S.
dollar-denominated certificates of deposit, time deposits and bankers'
acceptances of U.S. banks, generally banks with assets in excess of $1 billion;
taxable municipal securities, including variable rate demand notes; and
commercial paper (including participation interests in loans extended by banks
to issuers of commercial paper) that at the date of investment is rated A-1 by
Standard & Poor's Ratings Group (S&P) or Prime-1 by Moody's Investors Service,
Inc. (Moody's), or, if not rated, is of comparable quality.
Managed Growth Portfolio
The Managed Growth Portfolio seeks to achieve a total return above the rate of
inflation through an actively managed portfolio of stocks, bonds and money
market instruments (including repurchase agreements secured by such instruments)
selected with a concern for the investment and social impact of each investment.
It is not the policy of the Managed Growth Portfolio to take risks to obtain
speculatively or aggressively high returns. There is no predetermined percentage
of assets allocated to either stocks or bonds or money market instruments.
Investments are generally selected by the two active Sub-Advisor, U.S. Trust
Company of Boston and NCM Capital, subject to direction and control by the
Fund's Advisor and Board of Trustees. CAM manages a portion of the Portfolio's
fixed-income assets. The Investment Advisors determine the mix for the
Managed Growth Portfolio depending upon their view of market conditions
and the economic outlook.
The Managed Growth Portfolio may purchase both common and preferred stock. The
Portfolio normally invests in bonds which are considered investment grade,
including bonds which are direct or indirect obligations of the U.S. Government,
or which at the date of investment are rated AAA, AA, A, or BBB by S&P or Aaa,
Aa, A, or Baa by Moody's. Bonds rated Baa or BBB are considered medium grade
obligations, possess speculative characteristics, and are more susceptible to
changing market conditions. The Portfolio may purchase lower-rated obligations
(those rated below BBB, which are considered non-investment grade securities)
but no more than 20% of its assets may be invested in obligations rated lower
than B. The Portfolio may purchase without limitation bonds which are unrated
but of comparable quality to bonds rated B or better as determined by the
Advisors under the supervision of the Board of Trustees. The Managed Growth
Portfolio does not currently hold or intend to invest more than 5% of its assets
in non-investment grade securities (commonly referred to as "junk bonds"). See
the Statement of Additional Information for additional information concerning
bond ratings.
Bond Portfolio
The Bond Portfolio seeks to provide as high a level of current income as is
consistent with prudent investment risk and preservation of capital through
investment in bonds and other straight debt securities, including taxable
municipal securities, selected pursuant to the Fund's investment and social
criteria. The Bond Portfolio is neither speculative nor conservative in its
investment policies and will take reasonable risks in seeking to achieve its
investment objective of current income and preservation of capital. Debt
securities may be long-term, intermediate-term, short-term, or any combination
thereof, depending on the Advisors' evaluation of current and anticipated market
patterns and trends; the Advisors expect that the Bond Portfolio's average
weighted maturity will range between 5 and 20 years. The value of the Portfolio
will vary inversely with changes in interest rates.
In seeking to achieve these objectives, it is anticipated that under normal
conditions the Bond Portfolio will invest at least 65% of the value of its
assets in publicly-traded straight debt securities which have an investment
grade rating of A or above as determined by a nationally recognized rating
service such as S&P or Moody's, or if unrated, determined to be of comparable
quality. The Portfolio may also invest in obligations issued or guaranteed by
the U.S. Government or its agencies or instrumentalities, or in cash and cash
equivalents. Up to 20% of the Bond Portfolio's total assets may be invested in
straight debt securities which are not rated within the four highest grades
(including bonds rated below Baa or BBB and unrated securities), in convertible
debt securities, convertible preferred and preferred stocks, or other
securities. Bonds rated Baa or BBB, which are considered medium grade
obligations, possess speculative characteristics, and are more susceptible to
changing market conditions. The Bond Portfolio does not currently hold or intend
to invest more than 5% of its assets in non-investment grade securities ("junk
bonds"). See the Statement of Additional Information for additional information
concerning bond ratings.
Equity Portfolio
The Equity Portfolio seeks growth of capital through investment in the equity
securities of issuers within industries perceived to offer opportunities for
potential capital appreciation and which satisfy the Fund's investment and
social criteria. The Equity Portfolio is neither speculative nor conservative in
its investment policies and will take reasonable risks in seeking to achieve its
investment objective of growth of capital.
The Equity Portfolio normally invests at least 80% of the value of its net
assets in equity securities. Such securities include common stocks, convertible
securities and preferred stocks. For liquidity purposes or pending the
investment of the proceeds of the sale of its shares, the Equity Portfolio may
invest up to 20% of the value of its assets in money market instruments,
including: obligations of the U.S. Government, its agencies and
instrumentalities; certificates of deposit of banks, generally, those having
total assets of at least one billion dollars; and commercial paper or other
corporate notes of investment grade quality. Such securities may be purchased
subject to repurchase agreements with recognized securities dealers and banks.
If the Equity Portfolio has assumed a temporary defensive posture, there is no
limitation on the percentage of its assets which may be invested in money market
instruments. The Equity Portfolio does not currently hold or intend to invest
more than 5% of its assets in non-investment grade debt securities.
All Investments are Selected with a Concern for the Social Impact of each
Investment The Fund invests in accordance with its philosophy that long-term
rewards to investors will come from those organizations whose products,
services, and methods enhance the human condition and the traditional American
values of individual initiative, equality of opportunity and cooperative effort.
The Fund has developed the following criteria for the selection of organizations
in which it invests. The Fund recognizes, however, that these criteria represent
standards of behavior which few, if any, organizations totally satisfy and that,
as a matter of practice, evaluation of a particular organization in the context
of these criteria will involve subjective judgment by the Fund's Investment
Advisor and Sub-Advisors.
Given these considerations, the Fund seeks to invest in a producer or service
provider which:
1. Delivers safe products and services in ways which sustain our natural
environment. For example, the Fund looks for companies that produce energy from
renewable resources, while avoiding consistent polluters.
2. Is managed with participation throughout the organization in defining and
achieving objectives. For example, the Fund looks for companies that offer
employee stock ownership or profit-sharing plans.
3. Negotiates fairly with its workers, provides an environment supportive of
their wellness, does not discriminate on the basis of race, gender, religion,
age, disability, ethnic origin, or sexual orientation, does not consistently
violate regulations of the Equal Employment Opportunity Commission, and provides
opportunities for women, disadvantaged minorities, and others for whom equal
opportunities have often been denied. For example, the Fund considers both
unionized and non-union firms with good labor relations.
4. Fosters awareness of a commitment to human goals, such as creativity,
productivity, self-respect and responsibility, within the organization and the
world, and continually recreates a context within which these goals can be
realized. For example, the Fund looks for companies with an above average
commitment to community affairs and charitable giving.
The Fund will not invest in an issuer which the Advisors determine to be
significantly engaged in:
1. The production of nuclear energy or the manufacture of equipment to produce
nuclear energy.
2. Business activities in support of repressive regimes.
(From its inception through most of 1993, the Fund considered South Africa
to be a repressive regime. In light of recent political developments in South
Africa, the Fund's Board of Trustees has determined that South Africa
no longer constitutes a repressive regime and that the Fund may invest in
issuers doing business in South Africa if they meet the Fund's social criteria).
3. The manufacture of weapon systems.
The Fund will not, as a matter of operating policy which may be changed without
the approval of a majority of the outstanding shares, invest in an issuer
primarily engaged in the manufacture of alcoholic beverages or tobacco products,
or the operation of gambling casinos.
The Fund believes that social and technological change will continue to
transform America and the world for the balance of this century. Those
enterprises which exhibit a social awareness measured in terms of the above
attributes and considerations should be better prepared to meet future societal
needs for goods and services. By responding to social concerns, these
enterprises should maintain flexibility and further social goals. In so doing
they should not only avoid the liability that may be incurred when a product or
service is determined to have a negative social impact or has outlived its
usefulness, but also be better positioned to develop opportunities to make a
profitable contribution to society. These enterprises should be ready to respond
to external demands and ensure that over the longer term they will be viable to
provide a positive return to both investors and society as a whole.
INVESTMENT SELECTION PROCESS
Investments are selected on the basis of their ability to contribute to the dual
objectives of the Fund Potential investments are first screened for financial
soundness and then evaluated according to the Fund's social criteria. To the
greatest extent possible investments are made in companies exhibiting unusual,
positive accomplishments with respect to one or more of the criteria. Companies
must meet the Fund's minimum standards for all the criteria. With respect to
government securities, the Fund invests primarily in debt obligations issued or
guaranteed by agencies or instrumentalities of the U.S. Government whose
purposes further or are compatible with the Fund's social criteria, such as
obligations of the Student Loan Marketing Association, rather than general
obligations of the U.S. Government, such as Treasury securities. It should be
noted that the Fund's social criteria tend to limit the availability of
investment opportunities more than is customary with other investment companies.
The selection of an organization for investment by a Portfolio does not
constitute endorsement or validation by the Fund, nor does the exclusion of an
organization necessarily reflect failure to satisfy the Fund's social criteria.
Investors in the Fund are invited to send a brief description of companies they
believe might be suitable for investment by the Fund.
ADDITIONAL INVESTMENT POLICIES
As a matter of fundamental investment policy which cannot be changed without
shareholder approval, no more than 25% of the value of a Portfolio's assets may
be invested in any one industry, no more than 5% of a Portfolio's assets may be
invested in any one company, nor may a Portfolio, or the Fund in the aggregate,
purchase more than 10% of the voting securities of any issuer.
The Managed Growth, Bond and Equity Portfolios each can use various techniques
to increase or decrease its exposure to changing security prices, interest
rates, or other factors that affect security values. These techniques may
involve derivative transactions such as buying and selling options and futures
contracts and leveraged notes, entering into swap agreements, and purchasing
indexed securities. The Portfolios can use these practices either as
substitution or as protection against an adverse move in the Portfolios to
adjust the risk and return characteristics of the Portfolios. If the Advisor
and/or Sub-Advisor judges market conditions incorrectly or employs a strategy
that does not correlate well with a Portfolio's investments, or if the
counterparty to the transaction does not perform as promised, these techniques
could result in a loss. These techniques may increase the volatility of a
Portfolio and may involve a small investment of cash relative to the magnitude
of the risk assumed. Any instruments determined to be illiquid are subject to
the Fund's 10% restriction on illiquid securities. See the SAI for more detail
about these strategies.
The Fund may engage in repurchase agreements and reverse repurchase agreements.
In a repurchase agreement, the Fund buys a security subject to the right and
obligation to sell it back at a higher price. In order to minimize any risk
involved, the Fund engages in such transactions only with recognized securities
dealers determined by the Advisor to present a minimal credit risk. Repurchase
agreements are fully collateralized and always have a maturity of less than one
year. In a reverse repurchase agreement, the Fund sells a security subject to
the right and obligation to buy it back at a higher price. The Fund then invests
the proceeds from the transaction in another obligation in which it is
authorized to invest. For reverse repurchase agreements, the Fund maintains in a
segregated account liquid assets equal in value to the repurchase price.
Each Portfolio may borrow money from banks (and pledge its assets to secure such
borrowing) for temporary or emergency purposes, but not for leverage. Such
borrowing may not exceed 10% of the value of that Portfolio's total assets.
The Fund has adopted the following operating (i.e., non-fundamental) investment
policies which may be changed by the Board of Trustees without shareholder
approval:
No Portfolio may purchase illiquid securities if more than 10% of the value of
that Portfolio's net assets would be invested in such securities.
Each Portfolio may invest up to 25% of its assets in the securities of foreign
issuers. The Portfolios may purchase foreign securities directly, on foreign
markets, or through U.S. dollar-denominated American Depositary Receipts
("ADRs"), which are traded in the U.S. on exchanges or over the counter. ADRs
are receipts typically issued by a U.S. bank or trust company which evidence
ownership of underlying securities of a foreign corporation. Foreign securities
may involve additional risks, including currency fluctuations, risks relating to
political or economic conditions, and the potentially less stringent investor
protection and disclosure standards of foreign markets. These factors could make
foreign investments, especially those in developing countries, less liquid and
more volatile. By investing in ADRs rather than directly in foreign issuers'
stock, the Portfolios can avoid currency and some liquidity risks. The
information available for ADRs is subject to the more uniform and more exacting
accounting, auditing and financial reporting standards of the domestic market or
exchange on which they are traded. The Money Market Portfolio may purchase only
high quality U.S. dollar-denominated instruments.
For further information on the Fund's investment policies and restrictions, see
the Statement of Additional Information.
Special Equities and Private Placements
Due to the particular social objective of the Fund, opportunities may exist to
promote especially promising approaches to social goals through privately placed
investments. The Special Equities Committee of the Board of Trustees identifies,
evaluates, and selects certain of these investments, subject to ratification by
the Board. The private placement investments undertaken by the Fund, if any, may
be subject to a high degree of risk. Such investments may involve relatively
small and untried enterprises that have been selected in the first instance
because of some attractive social objectives or policies.
Many private placement investments have no readily available market and may
therefore be considered illiquid. Fund investments in private placements and
other securities for which market quotations are not readily available are
valued at fair market value under the direction and control of the Board.
High Social Impact Investments
Each Portfolio may invest a small portion of its respective assets in
investments in securities that offer a rate of return below the then prevailing
market rate and that present attractive opportunities for furthering the Fund's
social criteria ("High Social Impact Investments"); such High Social Impact
investments must be less than 1% of the Portfolio's assets. Such securities are
typically illiquid and unrated and generally considered non-investment grade
debt securities which involve a greater risk of default or price decline than
investment-grade securities. Through diversification and credit analysis and
limited maturity, investment risk can be reduced, although there can be no
assurance that losses will not occur. The High Social Impact Investments
Committee of the Board identifies, evaluates, and selects these investments,
subject to ratification by the Board.
YIELD AND TOTAL RETURN
The Portfolios may advertise different types of yield and total return
performance, which is calculated separately for each class. All performance
figures are based on historical earnings and are not intended to indicate future
performance. Further information about the Fund's performance is contained in
its Annual Report to Shareholders, which may be obtained without charge.
Money Market Portfolio
The Money Market Portfolio may advertise "yield" and "effective yield." The
"yield" of the Fund refers to the actual income generated by an investment in
the Portfolio over a particular base period, stated in the advertisement. If the
base period is less than one year, the yield will be "annualized." That is, the
amount of income generated by the investment during the base period is assumed
to be generated over a one-year period and is shown as a percentage of the
investment. The "effective yield" is calculated like yield, but assumes
reinvestment of earned income. The effective yield will be slightly higher than
the yield because of the compounding effect of this assumed reinvestment.
Bond Portfolio
Yield measures the Bond Portfolio's current investment performance for each
class, that is, the rate of income on its portfolio investments divided by the
share price of the class. Yield is computed by annualizing the result of
dividing the net investment income per share over a 30-day period by the maximum
offering price per share for that class on the last day of that period. Yields
are calculated according to accounting methods that are standardized for all
stock and bond funds.
Managed Growth, Bond, and Equity Portfolios
Total return differs from yield in that yield figures measure only the income
component of a Portfolio's investments, while total return includes not only the
effect of income dividends but also any change in net asset value, or principal
amount, during the stated period. The total return of a class shows its overall
change in value, including changes in share price and assuming all of its
dividends and capital gain distributions are reinvested. A cumulative total
return reflects the performance of the class over a stated period of time. An
average annual total return reflects the hypothetical annual compounded return
that would have produced the same cumulative total return if the performance had
been constant over the entire period. Because average annual returns tend to
smooth out variations in the returns, you should recognize that they are not the
same as actual year-by-year results. Both types of total return for Class A
shares usually will include the effect of paying the front-end sales charge. Of
course, total returns will be higher if sales charges are not taken into
account. Quotations of "overall return" do not reflect deduction of the sales
charge. You should consider overall return figures only if you qualify for a
reduced sales charge, or for purposes of comparison with comparable figures
which also do not reflect sales charges, such as mutual fund averages compiled
by Lipper Analytical Services, Inc.
MANAGEMENT OF THE FUND
The Board of Trustees supervises the Fund's activities and reviews its contracts
with companies that provide the Fund with services.
The Fund is an open-end diversified management investment company, organized as
a Massachusetts business trust on March 15, 1982.
The Fund is not required to hold annual shareholder meetings, but special
meetings may be called for certain purposes such as electing Trustees, changing
fundamental policies, or approving a management contract. As a shareholder, you
receive one vote for each share you own, except that matters affecting classes
differently, such as Distribution Plans, will be voted on separately by the
affected class(es).
Board of Trustees
REBECCA ADAMSON
President, First Nations Development Institute
RICHARD L. BAIRD, JR.
Director of Finance, Family Health Council, Inc.
JOHN G. GUFFEY, JR.
Chair, Calvert Social Investment Foundation
Treasurer and Director, Silby, Guffey & Co., Inc.
JOY V. JONES, Esq.
Attorney and Entertainment Manager
TERRENCE J. MOLLNER, Ed.D.
Founder and Chair, Trusteeship Institute, Inc.
SYDNEY AMARA MORRIS
Senior Minister, Unitarian Church of Vancouver, Canada
CHARLES T. NASON
Chairman, President, and Chief Executive Officer, The Acacia Group
D. WAYNE SILBY
President, Secretary, and Director, Silby, Guffey & Co., Inc.
CLIFTON S. SORRELL, JR.
President, Calvert Group, Ltd. and its subsidiaries
Advisory Council
The Advisory Council is a resource to the Board of Trustees regarding
communication networks for the Fund and the application and refinement of the
Fund's social criteria.
TIMOTHY SMITH
(Chair) Executive Director, Interfaith Center on Corporate Responsibility
JULIAN BOND
Visiting Professor, Harvard University; Distinguished Professor, American
University
ROBERT BROWNE
President, Twenty-First Century Foundation
WILLIAM J. BYNUM
President and CEO, Enterprise Corporation for the Delta
MARIAN WRIGHT EDELMAN
President & Founder, Children's Defense Fund
MICHAEL FISCHER
Executive Director, California State Coastal Conservancy
RANDALL FORSBERG
Executive Director, Institute for Defense and Disarmament Studies
ELIZABETH HARRIS
Vice President, UNC Partners, Inc.
SOPHIA BRACEY HARRIS
Founder and Executive Director, The Federation of Childcare Centers of Alabama,
Inc.
JAMES E. HEARD
President, Institutional Shareholder Services, Inc.
HAZEL HENDERSON
Independent Futurist and Author
ERICA HUNT
Senior Program Officer, New World Foundation
GRACE LECLAIR
Writer, Consultant and Theorist Concerning the Impacts of Economics on Family
and Community Life
JESSICA LIPNACK
President, The Networking Institute, Inc.
AMORY LOVINS
Director of Research, Rocky Mountain Institute
L. HUNTER LOVINS
President & Executive Director, Rocky Mountain Institute
ROBERT CARTER RANDOLPH
Of Counsel, Hendricks & Lewis
RUSTUM ROY
Professor of Geochemistry, Pennsylvania State University
BYRON RUSHING
State Representative, Massachusetts
MARC DAVID SARKADY
Leadership Consultant on Values & Visions to Renew Corporations & Governments
GAIL SNOWDEN
Division Executive, First Community Bank, Bank of Boston
JEFFREY STAMPS
Chairman, The Networking Institute, Inc.
THOMAS STONEBACK, Vice President and Chief Administrative Officer, Rodale Press,
Inc.
ERIC UTNE
Publisher and Editor, The Utne Reader
DIANE WHITE
Owner, Blackberry
D. Wayne Silby, Chair of the Fund's Board of Trustees, and Robert B. Zevin,
Senior Vice President, U.S. Trust Company, serve as ex officio members of the
Advisory Council. Mr. Smith is the chair of the Advisory Council.
Portfolio Managers
Managed Growth Portfolio
The Managed Growth Portfolio is managed by multiple investment sub-advisors,as
approved by the Portfolio's shareholders on August 30, 1995. With the
multi-manager approach, there will be several investment strategies in place
at any given time in order to help the Portfolio pursue its investment
objectives. The Managed Growth Portfolio may employ "growth managers," who
generally concentrate on stocks that have demonstrated, or are expected to
produce, earnings growth rates significantly greater than the market as a whole,
as well as "value managers," who tend to make stock selections on the basis of
perceived relative value as determined by a defined model in a bottom-up
approach.
Specifically, CAM will retain a pool of five investment sub-advisors ("Sub-
Advisors"), including U.S. Trust, to manage the Managed Growth Portfolio's
assets, though they will not necessarily be managing the Portfolio's money at
the same time. CAM initially will retain two of the five companies, U.S. Trust
and NCM Capital Management Group, Inc., to manage assets, and to manage a
portion of the fixed-income assets itself. Brown Capital Management, Inc.,
Fortaleza Asset Management, Inc. and Frontier Capital Management, Inc. will not
initially manage Portfolio assets.
Cheryl Smith, Vice President of U.S. Trust is the portfolio manager for the Bond
Portfolio. Ms. Smith joined U.S. Trust in 1992. In addition to the management of
the Bond Portfolio, her duties at U.S. Trust include management of institutional
and individual client investment portfolios and integration of client social
criteria into the portfolio management process. She served as Vice President of
Franklin Research & Development from 1987 to 1992. Ms. Smith has managed the
Bond Portfolio since August 1994. She is a Chartered Financial Analyst and holds
a Ph.D. in Economics from Yale University.
Philip J. Schettewi, Managing Partner, Vice President, and Chief Portfolio
Strategist of Loomis, Sayles & Company, L.P., is the portfolio manager for the
Equity Portfolio. Mr. Schettewi is a Chartered Financial Analyst, and has 12
years experience in the investment business.
Calvert Group is one of the largest investment management firms in the
Washington, D.C. area.
Calvert Group, Ltd., parent of the Fund's investment advisor, transfer agent,
and distributor, is a subsidiary of Acacia Mutual Life Insurance Company of
Washington, D.C. Calvert Group is one of the largest investment management firms
in the Washington, D.C. area. Calvert Group, Ltd. and its subsidiaries are
located at 4550 Montgomery Avenue, Suite 1000N, Bethesda, Maryland 20814. As of
December 31, 1994, Calvert Group managed and administered assets in excess of
$4.2 billion and more than 200,000 shareholder and depositor accounts.
Calvert Asset Management serves as Advisor to the Fund.
Calvert Asset Management Company, Inc. (the "Advisor") is the Fund's investment
advisor. The Advisor provides the Fund with investment supervision and
management, administrative services and office space; furnishes executive and
other personnel to the Fund; and pays the salaries and fees of all Trustees who
are affiliated persons of the Advisor. The Advisor may also assume and pay
certain advertising and promotional expenses of the Fund and reserves the right
to compensate broker-dealers in return for their promotional or administrative
services.
Asset management of the Managed Growth Portfolio will be by a team headed by
Reno J. Martini, Sr. Vice President and Chief Investment Officer. Mr. Martini
oversees the management of all Calvert portfolios. He has extensive experience
evaluating and purchasing municipal securities.
U.S. Trust
United States Trust Company of Boston (U.S. Trust) is the Sub-Advisor to the
Managed Growth and Bond Portfolios. U.S. Trust also aids the Advisor in
providing social screening research to the Advisor for the Fund's Money Market
Portfolio. U.S. Trust is a Massachusetts-chartered commercial bank with full
trust powers. It is wholly-owned and the principal subsidiary of UST Corp., a
Massachusetts bank holding company. It is located at 30 Court Street, Boston,
Massachusetts 02108. The Trust Department of U.S. Trust has managed funds as a
fiduciary since 1895.
Robert Zevin, Senior Vice President, Portfolio Strategist and Economist for U.S.
Trust Company, Boston, is the portfolio manager for U.S. Trust's portion of
Managed Growth's Portfolio assets. He has been with U.S. Trust since 1975. Dr.
Zevin is a founder of the socially responsible investing movement and a
founder-member of the Advisory Council of the Fund. He has taught at six
colleges and universities, including Harvard, University of California at
Berkeley, and Columbia University, and has authored several articles and books.
NCM Capital Management Group, Inc.
NCM Capital Management Group, Inc. manages the equity portion of the Managed
Growth Portfolio as of July 1, 1995. NCM was founded by Maceo K. Sloan in 1986
as a subsidiary of North Carolina Mutual Life Insurance Company, which was
established by Mr. Sloan's ancestors in 1898 and is one of the oldest and
largest minority-owned financial institutions in the country. NCM has been an
employee-owned subsidiary of Sloan Financial Group since 1991. Sixty percent of
Sloan Financial Group is co-owned by Mr. Sloan and Justin E. Beckett, who is
Executive Vice President and a Director of NCM. NCM is one of the largest
minority-owned investment management firms in the country, and provides products
in equity, fixed income and balanced portfolio management. It is also one of the
industry leaders in the employment and training of minority and women investment
professionals.
NCM's portfolio management team consists of seven members. Maceo K. Sloan, CFA,
FLMI, is Chairman, President, Chief Executive Officer, and Chief Investment
Officer of the company. He received a BA from Morehouse College, and MBA from
Georgia State University, and a JD from North Carolina Central University. He is
a Chartered Financial Analyst, and is Fellow of the Life Management Institute.
Mr. Sloan is a regular panelist on the PBS program Wall Street Week in Review
and has been a panelist and chaired several conferences concerning investment
opportunities in South Africa, such as the RCB International Seminar and the
Pensions 2000 on South Africa.
Clifford D. Mpare, CFA, CMA, is Senior Vice President and Director of
Investments. He received his BComm from St. Mary's University and an MBA from
Dalhousie University. He is a Chartered Financial Analyst and a Certified
Management Accountant. Prior to joining NCM, Mr. Mpare was a Senior Analyst with
First Union Corporation's private equity department, where he specialized in the
valuation of unlisted securities. He serves on the board of the Association of
Investment Management and Research, and is a member of the North Carolina
Society of Financial Analysts, the Institute of Chartered Financial Analysts,
the Institute of Management Accountants, and the Society of Management
Accountants of Canada.
Lawrence J. Verny is a Vice President. He received his BS from Fairleigh
Dickinson University and is a CFA candidate. Wendell E. Mackey is a Vice
President. He received his BBA from Howard University, and an MM from the J.L.
Kellogg Graduate School of Management at Northwestern University. Mr. Mackey is
a CFA candidate. Stephon A. Jackson, CFA, is a Vice President and Director of
Research. He received his BS from the University of North Carolina and his MBA
from The Wharton School of the University of Pennsylvania. He is a Chartered
Financial Analyst. David C. Carter is a Vice President, and received his BS and
MBA from New York University. Mr. Carter is a CFA candidate. Lorenzo Newsome,
Jr. is a Vice President. He received his BS from the University of Pittsburgh,
an MA from Bowie State University, and is a CFA candidate.
Brown Capital Management, Inc.
Managed Growth Portfolio
Brown Capital Management, Inc. of 809 Cathedral Street, Baltimore, Maryland,
believes that capital can be enhanced in times of opportunity and preserved in
times of adversity without timing the market. The firm uses a bottom-up approach
that incorporates growth-adjusted price earnings. Stocks purchased are generally
undervalued and have momentum, have earnings-per-share growth rates greater than
the market, are more profitable than the market, and have relatively low
price-earnings ratios. The firm concentrates on mid-/large-cap growth stocks.
Eddie C. Brown, Portfolio Manager, is founder and President of Brown Capital
Management. He has over 22 years of investment experience, having served as Vice
President and Portfolio Manager for 10 years at T. Rowe Price Associates
immediately prior to starting his own firm. Mr. Brown holds a BS in Electrical
Engineering from Howard University, an MS in Business Administration from the
Indiana University School of Business. Additionally, he is a
professionally-designated Chartered Financial Analyst and Chartered Investment
Counselor. Mr. Brown is active in community affairs. He is currently a
Commissioner for Maryland Public Broadcasting (a Gubernatorial appointment),
member of the Board of Directors of the Baltimore Community Foundation (where he
chairs the Investment Committee for the foundation's $30 million endowment),
member of the Dean's Advisory Council of Indiana University School of Business,
and a member of The President's Roundtable.
Joel Oppenheim, Portfolio Manager and Executive Vice President, has had 24 years
investment experience for institutions including the State of Maryland, T. Rowe
Price Associates, Inc., the National Rural Electric Pension and Brown Capital
Management. He holds a B.S. in Economics and Juris Doctor from the University of
Wisconsin, and is a Chartered Financial Analyst.
Robert E. Hall, Portfolio Manager and Sr. Vice President, has over 30 years
investment experience including 18 years with T. Rowe Price Associates, Inc.,
seven years with Emerging Growth Partners, Inc., and four years with The
Investment Center prior to joining Brown Capital Management. Mr. Hall is a
former Trustee of the Peabody Institute of Johns Hopkins University.
Fortaleza Asset Management, Inc.
Managed Growth Portfolio
Fortaleza Asset Management, Inc. of 200 West Adams, Suite 1901, Chicago,
Illinois, 60606, is a small-cap growth manager that bases its investment
principles on three key elements: (1) a proprietary stock valuation system that
incorporates technical and market sentiment indicators to determine optimal buy
points; (2) an emphasis on the preservation of capital through the
implementation of a strict selling discipline to lock in capital gains and
reduce losses; and (3) a discipline that does not force equity commitment in
overvalued markets. The investment approach is based on a bottom-up selection
process, and concentrates on small-cap growth stocks.
Margarita Perez is the founder, President and Portfolio Manager of Fortaleza,
and has over 13 years of investment experience. Prior to forming Fortaleza, Ms.
Perez was Vice President and Portfolio Manager for Monetta Financial Services,
Inc., where she was directly involved in the management of equity accounts
totaling in excess of $100 million. Ms. Perez is a native of Puerto Rico and has
lived in the Chicago area since the late 1960s. She earned an MBA from DePaul
University School of Commerce. Ms. Perez is a member of various professional
organizations including the American Institute of CPAs, National Society of
Hispanic MBAs, Association for Investment Management and Research, and the
National Association of Securities Professionals. She is also a Trustee of the
Chicago Historical Society.
James Boves, also a Portfolio Manager, brings over 25 years of investment
management and research experience to Fortaleza. He has an MA in Economics from
Northern Illinois University and is a member of the Investment Analysts Society
in Chicago.
Frontier Capital Management Inc.
Managed Growth Portfolio
Frontier Capital Management is a Boston-based, independent investment management
firm. Founded in 1980, Frontier is a research driven firm specializing in the
management of growth-oriented portfolios with particular focus on the small to
medium capitalization sectors of the market. As of December 31, 1994 the firm
managed approximately $1.6 billion in client assets, including over $200 million
in portfolios subject to socially responsible guidelines. Frontier concentrates
on small-/mid-cap growth stocks. Frontier has a large team of investment and
trading professionals. Those responsible for investing assets of the Portfolio
would be determined at the time the Advisor determines to allocate to Frontier
the management of a portion of Portfolio assets.
Loomis, Sayles
Loomis, Sayles & Company, L.P., (Loomis, Sayles) is the Sub-Advisor to the
Equity Portfolio, effective February 1, 1994. A private investment counsel firm
founded in 1926, Loomis, Sayles is organized as a limited partnership,
controlled by New England Mutual Life Insurance Company. The principal business
address of Loomis, Sayles is One Financial Center, Boston, Massachusetts 02111.
The Advisor receives a fee based on a percentage of the Fund's assets, and for
the Managed Growth and Equity Portfolios only, the performance. From this, the
Advisor pays the Sub-Advisor.
For its services during fiscal year 1994, the Advisor was entitled to and did
receive, pursuant to the Investment Advisory Agreement, 0.50% of the Money
Market Portfolio's, 0.65% of the Bond Portfolio's, and 0.70% of the Managed
Growth Portfolio's average daily net assets as investment advisory fees.
The Investment Advisory Agreement between the Fund and the Advisor, with respect
to the Managed Growth Portfolio, provides that the Advisor is entitled to a base
annual fee, payable monthly, of 0.70% of the Portfolio's average daily net
assets. Beginning January, 1997, the Advisor may earn (or have its base fee
reduced by) a performance adjustment based on the extent to which performance of
the Fund exceeds or trails the Relevant Index. The Relevant Indexes are as
follows:
CAM: Lehman Aggregate Bond Index
U.S. Trust - equity assets: Russell 3000
U.S. Trust - fixed income assets: Lehman Aggregate Bond Index
NCM: Standard & Poors 500 Stock Index
Brown: Standard & Poors 500 Stock Index
Fortaleza: Russell 2000
Frontier: 70% Russell 1000, 30% Russell 2000 (Blend)
Performance versus Performance Fee
the Relevant Adjustment
Index
6% to Less than 12% 0.05%
12% to Less than 18% 0.10%
18% or more 0.15%
The Investment Advisory Agreement between the Fund and the Advisor, with respect
to the Equity Portfolio, provides that the Advisor is entitled to a base annual
fee, payable monthly, of 0.70% of the Portfolio's average daily net assets.
Beginning June, 1995, the Advisor may earn (or have its base fee reduced by) a
performance adjustment based on the extent to which performance of the Fund
exceeds or trails the S&P's 500 Composite Index:
Performance versus Performance Fee
the S&P's 500 Adjustment
Composite Index
6% to Less than 12% 0.07%
12% to Less than 18% 0.14%
18% or more 0.20%
Pursuant to an Investment Sub-Advisory Agreement with the Advisor, U.S. Trust
makes investment selections for the Bond Portfolio. For these services U.S.
Trust receives a sub-advisory fee from the Advisor based on a percentage of the
respective Portfolio's average daily net assets (other than High Social Impact
Investments), subject to a monthly minimum fee of $1,000. For fiscal 1994, the
Advisor paid U.S. Trust a fee of 0.25% of the assets of the Managed Growth
Portfolio, and 0.20% of the assets of the Bond Portfolio. The Advisor also pays
a fee to U.S. Trust for providing social screening research for the Money Market
Portfolio.
Investment selections for a portion of the fixed-income assets of the Managed
Growth Portfolio are made by the Investment Advisor, CAM. The Sub-Advisors make
the investment selections for the remaining assets. Currently, the active
Sub-Advisors are U.S. Trust and NCM Capital. Sub-advisory fees are paid by the
Advisor and are equal to a base fee ("Base Fee") of 0.25% of the Managed Growth
Portfolio's average daily net assets, plus or minus a performance fee
("Performance Fee") as set forth in the table above. Payment (or subtraction) of
a Performance Fee is conditioned on (1) the performance of the Portfolio as a
whole having exceeded (or trailed) The Lipper Balanced Fund Index ("Fund Index")
during the Performance Period; and (2) payment of the Performance Fee not
causing the Portfolio's performance to fall below the Fund Index.
Loomis, Sayles makes investment selections for the Equity Portfolio. It receives
a sub-advisory fee from the Advisor equal to a base fee ("Base Fee") of 0.25% of
the Equity Portfolio's average daily net assets, plus or minus a performance fee
("Performance Fee") as set forth in the table above. Loomis, Sayles also
receives a 0.05% fee, paid by the Advisor (not the Fund) for its assistance with
the distribution of the Fund.
Calvert Distributors, Inc. serves as underwriter to market the Fund's shares.
Calvert Distributors, Inc. ("CDI") is the Fund's principal underwriter and
distributor. Under the terms of its underwriting agreement with the Fund, CDI
markets and distributes the Fund's shares and is responsible for preparing
advertising and sales literature, and printing and mailing prospectuses to
prospective investors.
The transfer agent keeps your account records.
Calvert Shareholder Services, Inc. is the Fund's transfer, dividend disbursing
and shareholder servicing agent.
SHAREHOLDER GUIDE
You can buy shares of the Fund in several ways which are described here and in
the chart below.
An account application accompanies this prospectus. A completed and signed
application is required for each new account you open, regardless of the method
you choose for making your initial investment. Additional forms may be required
from corporations, associations, and certain fiduciaries. If you have any
questions or need extra applications, call your broker, or Calvert Group at
800-368-2748. Be sure to specify which class you wish to purchase.
To invest in any of Calvert's tax-deferred retirement plans, please call Calvert
Group at 800-368-2748 to receive information and the required separate
application.
ALTERNATIVE SALES OPTIONS
The Managed Growth, Bond, and Equity Portfolios each offer two classes of
shares:
Class A Shares - Front End Load Option
Class A shares are sold with a front-end sales charge at the time of purchase.
Class A shares are not subject to a sales charge when they are redeemed.
Class C shares - Level Load Option
Class C shares are sold without a sales charge at the time of purchase or
redemption.
Class C shares have higher expenses
Each Portfolio bears some of the costs of selling its shares under Distribution
Plans adopted with respect to its Class A and Class C shares pursuant to Rule
12b-1 under the 1940 Act. Payments under the Class A Distribution Plan are
limited to 0.35% annually of the average daily net asset value of Class A
shares. The Class C Distribution Plan provides for the payment of an annual
distribution fee to CDI of up to 0.75%, plus a service fee of up to 0.25%, for a
total of 1.00% of the average daily net assets attributable to their respective
classes.
Considerations for deciding which class of shares to buy
Income distributions for Class A shares will probably be higher than those for
Class C shares, as a result of the distribution expenses described above. (See
also Yield and Total Return.) You should consider Class A shares if you
qualify for a reduced sales charge under Class A or if you plan to hold the
shares for several years. Class C shares are not available for investments of $1
million or more.
CLASS A SHARES - MANAGED GROWTH AND EQUITY PORTFOLIOS
Class A shares are offered at net asset value plus a front-end sales charge as
follows:
<TABLE>
<CAPTION>
Concession to
As a % As a % Dealers as
of Offering of Net a %of Amount
Amount of Investment Price Amount Invested Invested
===============================================================================
<S> <C> <C> <C>
Less than $50,000 4.75% 4.99% 4.00%
$50,000 but less
than $100,000 3.75% 3.90% 3.00%
$100,000 but less
than $250,000 2.75% 2.83% 2.25%
$250,000 but less
than $500,000 1.75% 1.78% 1.25%
$500,000 but less
than $1,000,000 1.00% 1.01% 0.80%
$1,000,000 and
over 0.00% 0.00% 0.25%**
</TABLE>
CLASS A SHARES - BOND PORTFOLIO
Class A shares are offered at net asset value plus a front-end sales charge as
follows:
<TABLE>
<CAPTION>
Concession to
As a % As a % Dealers as
of Offering of Net a %of Amount
Amount of Investment Price Amount Invested Invested
===============================================================================
<S> <C> <C> <C>
Less than $50,000 3.75% 3.90% 3.00%
$50,000 but less
than $100,000 3.00% 3.09% 2.25%
$100,000 but less
than $250,000 2.25% 2.30% 1.75%
$250,000 but less
than $500,000 1.75% 1.78% 1.25%
$500,000 but less
than $1,000,000 1.00% 1.01% 0.80%
$1,000,000 and
over 0.00% 0.00% 0.25%**
**For new investments (new purchases but not exchanges) of $1 million or more a
broker dealer will have the choice of being paid a finder's fee by CDI in one of
the following methods: (1) CDI may pay broker dealers, on a monthly basis for 12
months, an annual rate of 0.30%. Payments will be made monthly at the rate of
0.025% of the amount of the investment, less redemptions; or (2) CDI may pay
broker dealers 0.25% of the amount of the purchase; however, CDI reserves the
right to recoup any portion of the amount paid to the dealer if the investor
redeems some or all of the shares from the Fund within thirteen months of the
time of purchase.
</TABLE>
MANAGED GROWTH, BOND, AND EQUITY PORTFOLIOS
Sales charges on Class A shares may be reduced or eliminated in certain cases.
See Exhibit A to this prospectus.
The sales charge is paid to CDI, which in turn normally reallows a portion to
your broker-dealer. Upon written notice to dealers with whom it has dealer
agreements, CDI may reallow up to the full applicable sales charge. Dealers to
whom 90% or more of the entire sales charge is reallowed may be deemed to be
underwriters under the Securities Act of 1933.
In addition to any sales charge reallowance, your broker-dealer, or other
financial service firm through which your account is held, currently will be
paid periodic service fees at an annual rate of up to 0.25% of the average daily
net asset value of Class A shares held in accounts maintained by that firm.
CLASS A DISTRIBUTION PLAN
All Portfolios
The Fund has adopted a Distribution Plan with respect to its Class A shares (the
Class A Distribution Plan), which provides for payments at a maximum annual
rate of 0.35% (0.25% for the Money Market Portfolio) of the average daily net
asset value of Class A shares, to pay expenses associated with the distribution
and servicing of Class A shares. Amounts paid by the Fund to CDI under the Class
A Distribution Plan are used to pay to dealers and others, including CDI
salespersons who service accounts, service fees at an annual rate of up to 0.25%
of the average daily net asset value of Class A shares, and to pay CDI for its
marketing and distribution expenses, including, but not limited to, preparation
of advertising and sales literature and the printing and mailing of prospectuses
to prospective investors. For the fiscal year ended September 30, 1994, the
Managed Growth, Bond, and Equity Portfolios paid Class A Distribution Plan
expenses of 0.24%, 0.08%, and 0.10% of average net assets, respectively. The
Money Market Portfolio did not pay any Distribution Plan expenses in fiscal
1994.
Each of the Distribution Plans may be terminated at any time by vote of the
Independent Trustees or by vote of a majority of the outstanding voting shares
of the respective class.
CLASS C SHARES
Managed Growth, Bond and Equity Portfolios
Class C shares are not available through all dealers. Class C shares are offered
at net asset value, without a front-end sales charge or a contingent deferred
sales charge. Class C expenses are higher than those of Class A.
CLASS C DISTRIBUTION PLAN
The Fund has adopted a Distribution Plan with respect to its Class C shares (the
Class C Distribution Plan), which provides for payments at an annual rate of
up to 1.00% of the average daily net asset value of Class C shares, to pay
expenses of the distribution and servicing of Class C shares. Amounts paid by
the Fund under the Class C Distribution Plan are currently used by CDI to pay
dealers and other selling firms dealer-paid quarterly compensation at an annual
rate of up to 0.75%, plus a service fee as described above under Class A
Distribution Plan, of up to 0.25%, of the average daily net asset value of each
share sold by such others. For the period from inception (March 1, 1994) through
September 30, 1994, the Class C Distribution Plan expenses for Managed Growth,
Bond, and Equity Portfolios were 1.00%, 1.00%, and 1.00% of average net assets,
respectively.
ARRANGEMENTS WITH BROKER-DEALERS AND OTHERS
All Portfolios and all classes
CDI may also pay additional concessions, including non-cash promotional
incentives, such as merchandise or trips, to dealers employing registered
representatives who have sold or are expected to sell a minimum dollar amount of
shares of the Fund and/or shares of other Funds underwritten by CDI. CDI may
make expense reimbursements for special training of a dealer's registered
representatives, advertising or equipment, or to defray the expenses of sales
contests. Eligible marketing and distribution expenses may be paid pursuant to
the Fund's Rule 12b-1 Distribution Plan.
Dealers or others may receive different levels of compensation depending on
which class of shares they sell. Payments pursuant to a Distribution Plan are
included in the operating expenses of the class.
HOW TO BUY SHARES
(BE SURE TO SPECIFY WHICH CLASS YOU ARE BUYING)
Method New Accounts Additional Investments
========================================================================
By Mail $1,000 minimum $250 minimum
Please make your Please make your
check payable to the Calvert check payable to the Calvert
Social Investment Fund Social Investment Fund Portfolio
Portfolio of your choice of your choice and mail it with
` and mail it with your your investment slip to:
application to:
Calvert Group Calvert Group
P.O. Box 419544 P.O. Box 419739
Kansas City, MO 64179-6542 Kansas City, MO 64105-6739
By Registered,
Certified, or
Overnight Mail: Calvert Group
c/o NFDS, 6th Floor
1004 Baltimore
Kansas City, MO 64105-1807
Through $1,000 minimum $250 minimum
Your Broker
At the Visit the Calvert Branch Office to make investments by check.
Calvert See back cover page for the address.
Branch Office
FOR ALL OPTIONS BELOW, PLEASE CALL YOUR BROKER, OR CALVERT GROUP AT 800-368-2745
By Exchange $1,000 minimum $250 minimum
(From your account in another Calvert Group Fund)
When opening an account by exchange, your new account must be established with
the same name(s), address and taxpayer identification number as your existing
Calvert account.
By Bank Wire $1,000 minimum $250 minimum
By Calvert Not Available for $50 minimum
Money Initial Investment
Controller*
*Please allow sufficient time for Calvert Group to process your initial request
for this service, normally 10 business days. The maximum transaction amount is
$300,000, and your purchase request must be received by 4:00 p.m. Eastern time.
NET ASSET VALUE
The Money Market Portfolio shares are sold without a sales charge.
Money Market Portfolio: The price of one share is its "net asset value," or NAV.
NAV is computed by adding the value of the Fund's investments plus cash and
other assets, deducting liabilities and then dividing the result by the number
of shares outstanding. The securities are valued according to the "amortized
cost" method, which is intended to stabilize the NAV at $1.00 per share.
Managed Growth, Bond, and Equity Portfolios: Net asset value, or "NAV" refers to
the worth of one share. NAV is computed by adding the value of all portfolio
holdings, plus other assets, deducting liabilities and then dividing the result
by the number of shares outstanding. The NAVs of each class will vary daily
based on the market values of the Portfolio's investments.
Portfolio securities and other assets are valued based on market quotations,
except that securities maturing within 60 days are valued at amortized cost. If
quotations are not available, securities are valued by a method that the Board
of Trustees believes accurately reflects fair value.
The NAV is calculated at the close of the Fund's business day, which coincides
with the closing of the regular session of the New York Stock Exchange (normally
4:00 p.m. Eastern time). The Fund is open for business each day the New York
Stock Exchange is open. All purchases of Fund shares will be confirmed and
credited to your account in full and fractional shares (rounded to the nearest
1/1000 of a share). The Money Market Portfolio may send monthly statements in
lieu of immediate confirmations of purchases and redemptions.
WHEN YOUR ACCOUNT WILL BE CREDITED
Before you buy shares, please read the following information to make sure your
investment is accepted and credited properly.
All of your purchases must be made in U.S. dollars and checks must be drawn on
U.S. banks. No cash will be accepted. The Fund reserves the right to suspend the
offering of shares for a period of time or to reject any specific purchase
order. If your check does not clear, your purchase will be canceled and you
will be charged a $10 fee plus costs incurred by the Fund. When you purchase by
check or with Calvert Money Controller, those funds will be on hold for up to 10
business days from the date of receipt. During that period, redemptions against
those funds (including drafts) will not be honored. To avoid this collection
period, you can wire federal funds from your bank, which may charge you a fee.
Money Market Portfolio
Your purchase will be processed at the net asset value calculated after your
order is received and accepted. If your purchase is made by wire and is received
by 12:30 p.m. (Eastern time), your account will be credited and begin earning
dividends on the day of receipt. If your wire purchase is received after 12:30
p.m. Eastern time, it will be credited the same business day, and begin earning
dividends the next business day. Exchanges are credited the day the request is
received by mail or telephone, and begin earning dividends the next business
day. If the purchase is by check, and received by 4:00 p.m. Eastern time, it
will be credited that day, and begin earning dividends the next business day.
Managed Growth, Bond, and Equity Portfolios
Your purchase will be processed at the next offering price based on the next net
asset value calculated for each class after your order is received and accepted.
If your purchase is made by wire or exchange and is received by 4:00 p.m.
(Eastern time), your account will be credited on the day of receipt. If your
purchase is received after 4:00 p.m. Eastern time, it will be credited the next
business day.
Certain financial institutions or broker-dealers which have entered into a sales
agreement with the Distributor may enter confirmed purchase orders on behalf of
customers by phone, with payment to follow within a certain number of days of
the order as specified by the program. If payment is not received in the time
specified, the financial institution could be held liable for resulting fees or
losses.
EXCHANGES
You may exchange shares of the Fund for shares of the same class of other
Calvert Group Funds.
If your investment goals change, the Calvert Group Family of Funds has a variety
of investment alternatives that includes common stock funds, tax-exempt and
corporate bond funds, and money market funds. The exchange privilege is a
convenient way to buy shares in other Calvert Group Funds in order to respond to
changes in your goals or in market conditions. Before you make an exchange from
a Fund or Portfolio, please note the following:
o Call your broker or a Calvert representative for information and a prospectus
for any of Calvert's other Funds registered in your state. Read the prospectus
of the Fund or Portfolio into which you want to exchange for relevant
information, including class offerings.
Each exchange represents the sale of shares of one Portfolio and the purchase of
shares of another. Therefore, you could realize a taxable gain or loss on the
transaction.
o Complete and sign an application for an account in that Fund or Portfolio,
taking care to register your new account in the same name and taxpayer
identification number as your existing Calvert account(s). Exchange instructions
may then be given by telephone if telephone redemptions have been authorized and
the shares are not in certificate form.
o Shares on which you have already paid a sales charge at Calvert Group and
shares acquired by reinvestment of dividends or distributions may be exchanged
into another Fund at no additional charge.
o Shareholders (and those managing multiple accounts) who make two purchases and
two exchange redemptions of shares of the same Portfolio during any 6-month
period will be given written notice that they may be prohibited from making
additional investments. This policy does not prohibit a shareholder from
redeeming shares of the Fund, and does not apply to trades solely among money
market funds.
The Fund reserves the right to terminate or modify the exchange privilege with
60 days' written notice.
OTHER CALVERT GROUP SERVICES
CALVERT INFORMATION NETWORK
24 hour yield and prices
Calvert Group has a round-the-clock telephone service that lets existing
customers use a push button phone to obtain prices, yields, account balances,
and authorize certain transactions.
CALVERT MONEY CONTROLLER
Calvert Money Controller eliminates the delay of mailing a check or the expense
of wiring funds. You can request this free service on your application.
This service allows you to authorize electronic transfers of money to purchase
or sell shares. You use Calvert Money Controller like an "electronic check" to
move money ($50 to $300,000) between your bank account and your Calvert Group
account with one phone call. Allow one or two business days after the call for
the transfer to take place; for money recently invested, allow normal check
clearing time (up to 10 business days) before redemption proceeds are sent to
your bank.
You may also arrange systematic monthly or quarterly investments (minimum $50)
into your Calvert Group account. After you give us proper authorization, your
bank account will be debited to purchase Fund shares. A debit entry will appear
on your bank statement. If you would like to make arrangements for systematic
monthly or quarterly redemptions from your Calvert Group account, call your
broker or Calvert for a Money Controller Application.
TELEPHONE TRANSACTIONS
Calvert may record all telephone calls.
If you have telephone transaction privileges, you may purchase, redeem, or
exchange shares, wire funds and use Calvert Money Controller by telephone. You
automatically have telephone privileges unless you elect otherwise. The Fund,
the transfer agent and their affiliates are not liable for acting in good faith
on telephone instructions relating to your account, so long as they follow
reasonable procedures to determine that the telephone instructions are genuine.
Such procedures may include recording the telephone calls and requiring some
form of personal identification. You should verify the accuracy of telephone
transactions immediately upon receipt of your confirmation statement.
Complete the "Option" sections of the application for the easiest way to
establish services.
The easiest way to establish optional services on your Calvert Group account is
to select the options you desire when you complete your account application. If
you wish to add other options later, you may have to provide us with additional
information and a signature guarantee. Please call your broker or Calvert
Investor Relations at 800-368-2745 for further assistance. For our mutual
protection, we may require a signature guarantee on certain written transaction
requests. A signature guarantee verifies the authenticity of your signature, and
may be obtained from any bank, savings and loan association, credit union, trust
company, broker-dealer firm or member of a domestic stock exchange. A signature
guarantee cannot be provided by a notary public.
You can help in an effort to reduce Fund expenses and save paper and trees for
the environment.
HOUSEHOLDING OF GENERAL MAILINGS
Householding reduces Fund expenses and saves paper and trees for the
environment.
If you have multiple accounts with Calvert, you may receive combined mailings of
some shareholder information, such as semi-annual and annual reports. Please
contact Calvert Investor Relations at 800-368-2745 to receive additional copies
of information.
SPECIAL SERVICES AND CHARGES
The Fund pays for shareholder services but not for special services that are
required by a few shareholders, such as a request for a historical transcript of
an account. You may be required to pay a research fee for these special
services.
If you are purchasing shares of the Fund through a program of services offered
by a broker-dealer or financial institution, you should read the program
materials in conjunction with this Prospectus. Certain features may be modified
in these programs, and administrative charges may be imposed by the
broker-dealer or financial institution for the services rendered.
TAX-SAVING RETIREMENT PLANS
Contact Calvert Group for complete information kits discussing the plans, and
their benefits, provisions and fees.
Calvert Group can set up your new account under one of several tax-deferred
plans. These plans let you invest for retirement and shelter your investment
income from current taxes. Minimums may differ from those listed in the (How to
Buy Shares) chart. Also, reduced sales charges may apply. See (Exhibit A
Reduced Sales Charges.)
o Individual retirement accounts (IRAs): available to anyone who has earned
income. You may also be able to make investments in the name of your spouse, if
your spouse has no earned income.
o Qualified Profit-Sharing and Money-Purchase Plans (including 401(k) Plans):
available to self-employed people and their partners, or to corporations and
their employees.
o Simplified Employee Pension Plan (SEP-IRA): available to self-employed people
and their partners, or to corporations. Salary reduction pension plans (SAR-SEP
IRAs) are also available to employers with 25 or fewer employees.
o 403(b)(7) Custodial Accounts: available to employees of most non-profit
organizations and public schools and universities.
SELLING YOUR SHARES
You may redeem all or a portion of your shares on any business day. Your shares
will be redeemed at the next net asset value calculated after your redemption
request is received and accepted. See below for specific requirements necessary
to make sure your redemption request is acceptable. Remember that the Fund may
hold payment on the redemption of your shares until it is reasonably satisfied
that investments made by check or by Calvert Money Controller have been
collected (normally up to 10 business days).
REDEMPTION REQUIREMENTS TO REMEMBER
To ensure acceptance of your redemption request, please follow the procedures
described here and below.
Once your shares are redeemed, the proceeds will normally be sent to you on the
next business day, but if making immediate payment could adversely affect the
Fund, it may take up to seven (7) days. Calvert Money Controller redemptions
generally will be credited to your bank account on the first or second business
day after your phone call. When the New York Stock Exchange is closed (or when
trading is restricted) for any reason other than its customary weekend or
holiday closings, or under any emergency circumstances as determined by the
Securities and Exchange Commission, redemptions may be suspended or payment
dates postponed.
Money Market Portfolio
If you sell shares by telephone or written request, you will receive dividends
through the date the request is received and processed. If you write a draft to
sell shares, the shares will earn dividends until the draft is presented to the
Portfolio to be paid.
Minimum account balance is $1,000 per Portfolio.
Please maintain a balance in your account of at least $1,000 per Portfolio, per
class. If, due to redemptions, the account falls below $1,000, or you fail to
invest at least $1,000, your account may be closed and the proceeds mailed to
you at the address of record. You will be given notice that your account will be
closed after 30 days unless you make an additional investment to increase your
account balance to the $1,000 minimum.
HOW TO SELL YOUR SHARES
Draftwriting
(Money Market Portfolio only)
You may redeem shares in your Money Market Portfolio account by writing a draft
for at least $250. If you complete and return the signature card for
Draftwriting, the Portfolio will mail bank drafts to you, printed with your name
and address. Generally, there is no charge to you for the maintenance of this
service or the clearance of drafts, but the Fund reserves the right to charge a
service fee for drafts returned for insufficient funds. As a service to
shareholders, the Portfolio may automatically transfer the dollar amount
necessary to cover drafts you have written on the Portfolio to your Portfolio
account from any other of your identically registered accounts in Calvert money
market funds or Calvert Insured Plus. The Fund may charge a fee for this
service.
By Mail To:
Calvert Group
P.O. Box 419544
Kansas City, MO
64179-6544
You may redeem available shares from your account at any time by sending a
letter of instruction, including your name, account and Portfolio number, the
number of shares or dollar amount, and where you want the money to be sent.
Additional requirements, below, may apply to your account. The letter of
instruction must be signed by all required authorized signers. If you want the
money to be wired to a bank not previously authorized, then a voided bank check
must be enclosed with your letter. If you do not have a voided check or if you
would like funds sent to a different address or another person, your letter must
be signature guaranteed.
TYPE OF
REGISTRATION REQUIREMENTS
Corporations,
Associations Letter of instruction and a
corporate resolution,
signed by person(s) authorized
to act on the account,
accompanied by signature guarantee(s).
Trusts Letter of instruction signed
by the Trustee(s) (as
Trustee), with a signature
guarantee. (If the Trustee's
name is not registered on
your account, provide a
copy of the trust document,
certified within the last 60 days.)
By Telephone
Please call 800-368-2745. You may redeem shares from your account by telephone
and have your money mailed to your address of record or wired to an address or
bank you have previously authorized. A charge of $5 is imposed on wire transfers
of less than $1,000. See "Telephone Transactions."
Calvert Money Controller
Please allow sufficient time for Calvert Group to process your initial request
for this service (normally 10 business days). You may also authorize automatic
fixed amount redemptions by Calvert Money Controller. All requests must be
received by 4:00 p.m. (Eastern time). Accounts cannot be closed by this service.
Exchange to Another Calvert Group Fund
You must meet the minimum investment requirement of the other Calvert Group Fund
or Portfolio. You can only exchange between accounts with identical names,
addresses and taxpayer identification number, unless previously authorized with
a signature-guaranteed letter.
Systematic Check Redemptions
If you maintain an account with $10,000 or more, you may have up to two (2)
redemption checks for $100 or more sent to you on the 15th of each month,
simply by sending a letter with all the information, including your account
number, and the dollar amount ($100 minimum). If you would like a regular
check mailed to another person or place, your letter must be signature
guaranteed.
Through your Broker
If your account is held in your broker's name ("street name"), you should
contact your broker directly to transfer, exchange or redeem shares.
DIVIDENDS AND TAXES
Each year, the Fund distributes substantially all of its net investment income
to shareholders.
Dividends from the Money Market Portfolio's net investment income are accrued
daily and paid monthly. The Managed Growth Portfolio pays dividends quarterly,
the Bond Portfolio pays dividends monthly, and the Equity Portfolio pays
dividends annually. Net investment income consists of interest income, net
short-term capital gains, if any, and dividends declared and paid on
investments, less expenses. Distributions of the Fund's net short-term capital
gains (treated as dividends for tax purposes) and its net long-term capital
gains, if any, are normally paid once a year; however, the Fund does not
anticipate making any such distributions unless available capital loss
carryovers have been used or have expired. Dividend and distribution payments
will vary between classes; dividend payments are anticipated to be generally
higher for Class A shares.
Dividend payment options (available monthly or quarterly)
Dividends and any distributions are automatically reinvested in the same
Portfolio at net asset value (no sales charge), unless you elect to have the
dividends of $10 or more paid in cash (by check or by Calvert Money Controller).
Dividends and distributions from any Calvert Group Fund or Portfolio may be
automatically invested in an identically registered account with the same
account number in any other Calvert Group Fund at net asset value. If
reinvested in the same Fund account, new shares will be purchased at net
asset value on the reinvestment date, which is generally 1 to 3 days prior to
the payment date. You must notify the Fund in writing to change your payment
options. If you elect to have dividends and/or distributions paid in cash,
and the U.S. Postal Service cannot deliver the check, or if it remains
uncashed for six months, it, as well as future dividends and distributions, will
be reinvested in additional shares.
(Buying a Dividend)
At the time of purchase, the share price of each class of the Managed Growth,
Bond, and Equity Portfolios may reflect undistributed income, capital gains or
unrealized appreciation of securities. Any income or capital gains from these
amounts which are later distributed to you are fully taxable. On the record date
for a distribution, the Fund's share value is reduced by the amount of the
distribution. If you buy shares just before the record date ("buying a
dividend") you will pay the full price for the shares and then receive a portion
of the price back as a taxable distribution.
Federal Taxes
In January, the Fund will mail you Form 1099-DIV indicating the federal tax
status of dividends and any capital gain distributions paid to you by the Fund
during the past year. Generally, dividends and distributions are taxable in the
year they are paid. However, any dividends and distributions paid in January but
declared during the prior three months are taxable in the year declared.
Dividends and distributions are taxable to you regardless of whether they are
taken in cash or reinvested. Dividends, including short-term capital gains, are
taxable as ordinary income. Distributions from long-term capital gains are
taxable as long-term capital gains, regardless of how long you have owned Fund
shares.
Managed Growth, Bond, and Equity Portfolios
You may realize a capital gain or loss when you sell or exchange shares. This
capital gain or loss will be short- or long-term, depending on how long you have
owned the shares which were sold. In January, the Portfolios will mail you Form
1099-B indicating the total amount of all sales, including exchanges. You should
keep your annual year-end account statements to determine the cost (basis) of
the shares to report on your tax returns.
Other Tax Information
In addition to federal taxes, you may be subject to state or local taxes on your
investment, depending on the laws in your area. You will be notified to the
extent, if any, that dividends reflect interest received from U.S. government
securities. Such dividends may be exempt from certain state income taxes.
Taxpayer Identification Number
If we do not have your correct Social Security or Taxpayer Identification Number
("TIN") and a signed certified application or Form W-9, Federal law requires the
Fund to withhold 31% of your dividends, and, for the Managed Growth, Bond, and
Equity Portfolios, 31% of certain redemptions. In addition, you may be subject
to a fine. You will also be prohibited from opening another account by exchange.
If this TIN information is not received within 60 days after your account is
established, your account may be redeemed (closed) at the current NAV on the
date of redemption. The Fund reserves the right to reject any new account or any
purchase order for failure to supply a certified TIN.
EXHIBIT A - REDUCED SALES CHARGES (CLASS A ONLY)
You may qualify for a reduced sales charge through several purchase plans
available. You must notify the Fund at the time of purchase to take advantage of
the reduced sales charge.
Right of Accumulation. The sales charge is calculated by taking into account not
only the dollar amount of a new purchase of shares, but also the higher of cost
or current value of shares previously purchased in Calvert Group Funds that
impose sales charges. This automatically applies to your account for each new
purchase.
Letter of Intent. If you plan to purchase $50,000 or more of Fund shares over
the next 13 months, your sales charge may be reduced through a "Letter of
Intent." You pay the lower sales charge applicable to the total amount you plan
to invest over the 13-month period, excluding any money market fund purchases.
Part of your shares will be held in escrow, so that if you do not invest the
amount indicated, you will have to pay the sales charge applicable to the
smaller investment actually made. For more information, see the Statement of
Additional Information.
Group Purchases. If you are a member of a qualified group, you may purchase
shares of the Fund at the reduced sales charge applicable to the group taken as
a whole. The sales charge is calculated by taking into account not only the
dollar amount of the shares you purchase, but also the higher of cost or current
value of shares previously purchased and currently held by other members of your
group.
A "qualified group" is one which (i) has been in existence for more than six
months, (ii) has a purpose other than acquiring Fund shares at a discount, and
(iii) satisfies uniform criteria which enable CDI and dealers offering Fund
shares to realize economies of scale in distributing such shares. A qualified
group must have more than 10 members, must be available to arrange for group
meetings between representatives of CDI or dealers distributing the Fund's
shares, must agree to include sales and other materials related to the Fund in
its publications and mailings to members at reduced or no cost to CDI or
dealers, and must seek to arrange for payroll deduction or other bulk
transmission of investments to the Fund.
Pension plans may not qualify participants for group purchases; however, such
plans may qualify for reduced sales charges under a separate provision (see
below). Members of a group are not eligible for a Letter of Intent.
Retirement Plans Under Section 457, Section 403(b)(7), or Section 401(k). There
is no sales charge on shares purchased for the benefit of a retirement plan
under S 457 of the Internal Revenue Code of 1986, as amended ("Code"), or for a
plan qualifying under S 403(b)(7) of the Code if, at the time of purchase,
Calvert Group has been notified in writing that the 403(b)(7) plan has at least
200 eligible employees. Furthermore, there is no sales charge on shares
purchased for the benefit of a retirement plan qualifying under S 401(k) of the
Code if, at the time of such purchase, the 401(k) plan administrator has
notified Calvert Group in writing that a) its 401(k) plan has at least 200
eligible employees; or b) the cost or current value of shares the plan has in
Calvert Group of Funds (except money market funds) is at least $1 million.
Neither the Fund, nor CDI, nor any affiliate thereof will reimburse a plan or
participant for any sales charges paid prior to receipt of such written
communication and confirmation by Calvert Group. Plan administrators should send
requests for the waiver of sales charges based on the above conditions to:
Calvert Group Retirement Plans, 4550 Montgomery Avenue, Suite 1000N, Bethesda,
Maryland 20814.
Other Circumstances. There is no sales charge on shares of any fund (portfolio
or series) of the Calvert Group of Funds sold to:
(1) current and retired members of the Board of Trustees/Directors of the
Calvert Group of Funds, (and the Advisory Council of the Calvert Social
Investment Fund); (2) directors, officers and employees of the Advisor,
Distributor, and their affiliated companies; (3) directors, officers and
registered representatives of brokers distributing the Fund's shares; and
immediate family members of persons listed in (1), (2), or (3) above; (4)
dealers, brokers, or registered investment advisors that have entered into an
agreement with CDI providing specifically for the use of shares of the Fund
(Portfolio or Series) in particular investment programs or products (where such
program or product already has a fee charged therein) made available to the
clients of such dealer, broker, or registered investment advisor; (5) trust
departments of banks or savings institutions for trust clients of such bank or
savings institution; and (6) purchases placed through a broker maintaining an
omnibus account with the Fund (Portfolio or Series) and the purchases are made
by (a) investment advisors or financial planners placing trades for their own
accounts (or the accounts of their clients) and who charge a management,
consulting, or other fee for their services; or (b) clients of such investment
advisors or financial planners who place trades for their own accounts if such
accounts are linked to the master account of such investment advisor or
financial planner on the books and records of the broker or agent; or (c)
retirement and deferred compensation plans and trusts, including, but not
limited to, those defined in S 401(a) or S 403(b) of the I.R.C., and (rabbi
trusts.)
Established Accounts. Shares of the Managed Growth Portfolio may be sold at net
asset value to accounts opened on or before July 17, 1986.
Dividends and Capital Gain Distributions from other Calvert Group Funds. You may
prearrange to have your dividends and capital gain distributions from another
Calvert Group Fund automatically invested in another account with no additional
sales charge. Dividends and distributions from Calvert Group money market funds
used to purchase shares of the Fund will not be subject to the applicable sales
charge.
Reinstatement Privilege. If you redeem Fund shares and then within 30 days
decide to reinvest in the same Fund, you may do so at the net asset value next
computed after the reinvestment order is received, without a sales charge. You
may use the reinstatement privilege only once. The Fund reserves the right to
modify or eliminate this privilege.
To Open an Account: Prospectus
800-368-2748 January 31, 1995 As Revised September 30, 1995
Performance and Prices:
Calvert Information Network CALVERT SOCIAL INVESTMENT FUND
24 hours, 7 days a week Money Market Portfolio
800-368-2745 Managed Growth Portfolio
Bond Portfolio
Equity Portfolio
Service for Existing Account:
Shareholders 800-368-2745
Brokers 800-368-2746
TDD for Hearing Impaired:
800-541-1524
Branch Office:
4550 Montgomery Avenue
Suite 1000N
Bethesda, Maryland 20814
Registered, Certified or
Overnight Mail:
Calvert Group
4550 Montgomery Avenue
Suite 1000N
Bethesda, Maryland 20814
Calvert Group
c/o NFDS, 6th Floor
1004 Baltimore
Kansas City, MO 64105
PRINCIPAL UNDERWRITER
Calvert Distributors, Inc.
4550 Montgomery Avenue
Suite 1000N
Bethesda, Maryland 20814
Inside Front Cover:
TABLE OF CONTENTS
Highlights
Fund Expenses
Financial Highlights
Investment Objectives and Policies
Investment Selection Process
Additional Investment Policies
Yield and Total Return
Management of the Fund
SHAREHOLDER GUIDE:
Alternative Sales Options
How to Buy Shares
Net Asset Value
When Your Account Will Be Credited
Exchanges
Other Calvert Group Services
Selling Your Shares
How to Sell Your Shares
Dividends and Taxes
Exhibit A - Reduced Sales Charges
